Nexo to Exit U.S - Lack of Regulatory Clarity
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An editor at Coincrop
06 Dec 2022 | 3 min read
exo has announced its plans to discontinue its services in the United States due to regulatory clarity.
Popular crypto lending platform Nexo has announced that it plans to phase out its products and services in the United States over the coming months. The process will be gradual and orderly.
After 18 months of negotiations with U.S. state and federal regulators, the team at Nexo has given up trying to agree on a way forward for its products.
Nexo reports that at first, regulators showed encouraging signs of wanting to work together and find a sustainable solution. However, now the regulators ‘are unwilling to coordinate with one another, and are taking positions that contradict each other, creating an impossible environment to operate efficiently and deliver the expected value for our client.’
Furthermore, the Nexo team has attempted to cooperate with state and federal regulators by supplying requested information and adjusting its business practices.
Nexo stated, ‘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.’
From December 6th onward, Nexo's existing customers in eight more states will no longer have access to the Earn Interest Product: Indiana, Kentucky, Maryland, Oklahoma, South Carolina, Wisconsin, California and Washington.
However, users in the eight states will still have access to regular Nexo products.
JonathanAn editor at Coincrop
Jonathan is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely sailing.
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