What will Nexo’s US Plan look like during the regulator discussions?
What will Nexo’s US Plan look like during the regulator discussions? Nexo will discontinue its Direct Earn product in most US states.
Crypto lender Nexo said on Monday that it will stop offering products and services in the United States in the coming months, immediately end access to its Interest Rate product in eight states, and will not sign up new US customers for Product Access. Nexo said it was in talks with state and federal authorities in the United States, but those had reached “no problem”. The company did not provide many details about the discussions, but said it had shared information with whistleblowers and tried to “adjust its business” to address law enforcement’s concerns.
Nexo has removed Earn customers from New York and Vermont at the insistence of those states’ regulators, according to a blog post. It will stop entering Indiana, Kentucky, Maryland, Oklahoma, South Carolina, Wisconsin, California and Washington. Residents of these states can continue to use other Nexo services.
“It is now unfortunately that we and despite statements to the contrary, the United States refuses to provide a continuous way to enable the blockchain industry and we cannot give assurances to our customers confidence that regulators are focused on their best interests,” the blog post read.
The company did not give a firm timeline for its general rollout in the United States.
Nexo listed its complaint with the US regulators in a blog post, saying that “although the regulators initially encouraged our cooperation and a permanent approach seems possible”, the recent events – indicating that the chaos caused the collapse of FTX – created an “impossible situation” for the company. continue to work.
“This was made clear by the decision of the Financial Conduct Authority last Thursday (CFPB) asserting that it has the authority to inspect our preferred stock, which the [Securities and Exchange Commission[ and state regulators insisted at one point that this was the subject matter. up to their authority,” the blog post reads.
He pointed to a lawsuit filed in September by eight different states, including New York and California, alleging the company’s Earn product violated state securities laws. At the time, Nexo told CoinDesk that it had “ceased to sign new US customers” for its Earn product.
Crypto lenders in general have had a tough year in the US, with many of Nexo’s biggest competitors including BlockFi, Celsius Network and Voyager Digital all filing for bankruptcy in recent months.