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.
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.
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.