Dec 06, 2022 Frank Stewskid
Nexo will cease to service the United States market in the next month, according to a blog post published by the lending platform, published on December 5, 2022. The company states that the reason for its decision is the actions of US state and federal regulators, which “refuse to provide a path forward for enabling blockchain businesses”.
Today we are announcing the regrettable but necessary decision that Nexo will be phasing out its products and services in the United States due to a lack of regulatory clarity. 🧵— Nexo (@Nexo) December 5, 2022
According to the blog post, Nexo has been in a dialogue with US regulators for more than 18 months, however, it has gone to a dead end, despite Nexo’s “significant ongoing efforts to provide requested information and to proactively modify its business” while trying to respond to regulator’s concerns.
Nexo also states that as part of its efforts to please regulators, during 2021 and 2022, the company has “off-boarded” clients from New York and Vermont, while also suspending new registrations for all US-based clients for its Earn Interest Product. Furthermore, starting December 6, 2022, Nexo’s Earn Interest Product will not be available for its customers from the US states – Indiana, Kentucky, Maryland, Oklahoma, South Carolina, Wisconsin, California, and Washington.
While exiting the US market, Nexo will continue processing withdrawals, and besides the aforementioned limitations, other Nexo features will remain accessible to its USA clients in the “interim future”.