Crypto Lender Nexo To Leave United States, Citing Lack of Regulatory Clarity

Crypto Lender Nexo To Leave United States, Citing Lack of Regulatory Clarity

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Switzerland-based crypto lender Nexo is announcing plans to cease its business operations in the United States.

The crypto lender says that the decision is influenced by the regulatory and policy landscape in the United States.

Withdrawals will continue to be processed in “real-time,” according to Nexo.

“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.

As we effectuate our orderly exit from the US, Nexo’s payment specialists have been informed and will continue processing withdrawals in real-time so that customers, as always, have uninterrupted access to their assets.”

Starting Tuesday, Nexo says it will cease offering its Earn Interest Product, a product that offers yield on digital assets, in eight US states. Other products will continue to be offered in the eight states for the time being, according to the crypto lender.

“As of December 6, 2022, our Earn Interest Product will not be available for existing clients in eight additional US states – Indiana, Kentucky, Maryland, Oklahoma, South Carolina, Wisconsin, California, and Washington.

These immediate changes only affect the usability of the Earn Interest Product for citizens and residents of the eight aforementioned states. These clients will continue to enjoy access to all other Nexo products, available in these jurisdictions, until further notice.”

The crypto lender says its decision to quit the US, was arrived at after months of dialogue with regulators, during which Nexo halted offering its products in some states.

“Our decision comes after more than 18 months of good-faith dialogue with US state and federal regulators. Despite their inconsistent and changing positions, Nexo has engaged in significant ongoing efforts to proactively modify its business in response to their concerns.

As part of our cooperative approach with regulators, during the course of 2021 and 2022, we have off-boarded clients from the states of New York and Vermont and have suspended new registrations for all US clients for our Earn Interest Product to meet regulators’ expectations.”

In September, state regulators in California, Kentucky, Maryland, New York, Oklahoma, South Carolina, Vermont and Washington accused Nexo of violating securities laws by offering the Earn Interest Product.

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Featured Image: Shutterstock/Vitaly Sosnovskiy

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