Due to unclear regulatory policies, Crypto lending platform Nexo decided to drag its services from the United States.
Nexo is a popular crypto lending platform, which provides services like a Crypto Bank where users can hold crypto assets & earn rewards. This lending platform also has a partnership with the Fidelity Digital Assets firm.
On 5 December, an announcement by Nexo confirmed that Nexo services will no longer remain available to people from the United States.
Nexo noted that rules & regulatory policies are not much clear in the jurisdiction of the United States, so it was a necessary decision for the company.
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Today we are announcing the regrettable but necessary decision that Nexo will be phasing out its products and services in the United States due to a lack of regulatory clarity.
— Nexo (@Nexo) December 5, 2022
Perhaps Nexo appreciated the role of the US-based regulators. According to the team, there was better cooperation between US regulators & Nexo’s compliance-based services but recently the whole situation changed the opposite.
“Initially, regulators encouraged our cooperation and a sustainable path forward seemed viable, but recent events and the subsequent change in regulators’ behavior point to the opposite,” Nexo said.
Nexo also noted that its services were modified & changed from time to time for the US-based users because of the respective change in the regulatory policies but the current situation is worse.
Now, Nexo suspended new account registration for US-based crypto investors and all the existing users’ accounts will be down without any penalty system so that US-based customers can withdraw their funds easily without any restrictions.
Needless to say, any active Fixed Terms will automatically be unlocked, free of charge, with no penalty, on December 6. All interest accrued until December 6, 2022 will be credited to your Savings Wallet immediately.
— Nexo (@Nexo) December 5, 2022
Earlier this, in September of this year, a few media reports confirmed that Nexo was sued by 8 US state regulatory bodies over its failure to register as a state’s securities and commodities broker.
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