Nexo Leaves U.S. Behind After Regulators Seemingly Fail To Provide Clear Path Forward
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.
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