Nexo bows out of the US after facing regulatory scrutiny

Nexo bows out of the US after facing regulatory scrutiny

December 6, 2022 Off By Mags Smith

Popular Crypto lending lending platform Nexo has announced it’s withdrawal from the US in a blog post. This comes after months of negotiations with various state and federal regulators fell flat.

In the post Nexo said that ,“It is now unfortunately clear to us that despite rhetoric to the contrary, the US refuses to provide a path forward for enabling blockchain businesses and we cannot give our customers confidence that regulators are focused on their best interests.” 

Earlier this year 8 US state regulators charged Nexo for allegedly failing to register its Earn Interest Product. According to California’s Department of Financial Protection and Innovation, Nexo touted interest rates as high as 36%. However, Nexo was quick to point out that this was only offered on one asset and that they did not advertise this rate to the greater public. 

The announcement comes weeks after regulators around the world have called for the regulation of cryptocurrency exchanges and related businesses, following the now infamous collapse of FTX last month.

Nexo has committed to processing customer withdrawals “in real-time” as it withdraws from the United States, as they gradually withdraw from the market.