Crypto Lender Nexo announced today that it will be phasing out US products and services over the coming months due to it getting into a “stalemate” with regulators.
British company He said In announcing Monday that it has been talking to regulators for 18 months but the US “is refusing to provide a path to enabling blockchain companies.”
Nexo is a digital asset platform that lends money to customers and uses the proceeds to pay interest. (Disclosure: Nexo is One of 22 investors in Decrypt.)
“Our decision comes after more than 18 months of good faith dialogue with state and federal regulators in the United States reached a dead end,” the company said in a blog post.
The company added that state and federal regulators have had “inconsistent and shifting positions” and that they now “cannot give our customers confidence that regulators are focused on their best interests.”
Today we’re announcing the unfortunate but necessary decision for Nexo to phase out its products and services in the United States due to a lack of regulatory clarity. 🧵
The company said that starting tomorrow it will end access to the Earn Interest product in eight states — Indiana, Kentucky, Maryland, Oklahoma, South Carolina, Wisconsin, California and Washington — and no longer allow US customers to sign up to earn the product. .
State securities regulators in California and several other states in September took action against Nexo’s parent company, Nexo Group, argued that the company’s vested interest product was an unregistered security.
Unlike other crypto lenders like BlockFi, Voyager, and Celsisus, which all collapsed after the fall of crypto project Terra and digital asset exchange FTX, Nexo has so far managed to keep its head above water.
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