Nexo, the crypto borrowing and lending platform, has planned to gradually cease operations in the United States “over the coming months.”
It has been reported that Nexo has stated that the decision to leave the US is “regrettable but necessary.” In the post, Nexo said that it has been talking to US regulators for 18 months in an attempt to determine how to comply with US financial laws. But these talks have not resulted in an agreement between the company and US officials.
The company said:
“Our decision comes after more than 18 months of good-faith dialogue with US state and federal regulators which has come to a dead end. 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.”
However, Nexo disclosed that it has off-boarded customers from New York and Vermont and suspended further registrations for the platform’s Earn Interest product in the US.
In addition, current customers in eight other states will stop having access to the Earn Interest product after December 6, 2022. Existing customers from other states will still be able to access the product for the time being.
Thus, US regulators have come under fire in recent weeks following the collapse of crypto exchange FTX. Some US lawmakers have argued that regulators should be given more expansive powers to monitor crypto exchanges. On the other hand, some industry executives have made the opposite claim that overregulation is driving US investors onto more risky offshore exchanges.
Source: Cointelegraph