According to a blog post published on December 5th, the crypto borrowing and lending platform known as Nexo intends to slowly cease operations in the U.S. over the coming months. Nexo has stated that leaving the United States is a regrettable yet necessary step.
Nexo indicated that the company has been in discussions with U.S. regulators for 18 months in order to determine how to comply with local financial laws. However, no agreement has been reached between the company and U.S. officials so far.
As per the company, the decision was made following countless back and forth discussions with state and federal regulators in the United States that have since come to a halt. According to the post, despite rhetoric to the contrary, the U.S has reportedly refused to offer a path forward for empowering blockchain businesses.
As a result, Nexo believes that it cannot grant its customers confidence that regulators are looking out for their best interests. Most recently, Nexo announced that it has deactivated customers from New York and Vermont and has also halted new registrations for their Earn Interest product in the country. Furthermore, current customers in eight other states shall also lose access to this product on December 6th, 2022.
After the FTX collapse, U.S. lawmakers have contended that regulators should be given greater authority to monitor cryptocurrency exchanges. On the other hand, several industry leaders have claimed that overregulation is precisely why so many U.S. investors are leaving the country behind in the first place.
Nexo Leaves U.S. Behind After Regulators Seemingly Fail To Provide Clear Path Forward
Subscribe to the CryptoWeekly Newsletter
Get the top stories, funding deals, technical analysis, cryptocurrency jobs and much more delivered to your inbox, every Monday morning.
November 06,2024
Revelation Of Varying Fees Lead To Controversy Surrounding Binance And Coinbase
November 06,2024
Bitcoin Makes History By Reaching New All Time High Price
November 05,2024
Global Dollar Stablecoin Network Launched By Paxos And Others
November 05,2024
Relying On Donald Trump May Have Unintended Consequences For Crypto
November 04,2024
MrBeast Under Fire For Allegedly Promoting Several Crypto Scams
November 04,2024
Death Of Beloved Animal Causes Various Meme Coins To Soar
November 04,2024
Web3 Fundraising Deals - 29th October To 4th November 2024
November 03,2024
Bitcoin Crashes Below $70K As Presidential Elections Approach
November 02,2024
UBS Finally Launches uMINT On Ethereum After Long Wait
November 01,2024
Tron Founder Offers Insights Into Stablecoins And The Meme Coin Boom
November 01,2024
Stock Market Wipeout Leads To Massive Single Day Decline For Coinbase
October 31,2024