Nexo decides to leave the US

Nexo leaving US, says country lacks clear regulations. Read this full report

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.

Read also: ScienceIO CEO says FTX founder stole $10B via a $40M small donation

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Jitender
Jitender

Bitcoin trader & investor since 2013. Love to share valuable information among people who don't believe in Blockchain technology and based cryptocurrency

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