Popular crypto lending company Nexo has decided to phase out its operations in the US, it announced in its latest blog Mail.
In the post, Nexo cited a lack of regulatory clarity as the reason for its “unfortunate” but “necessary” decision.
"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," the firm stated.
Over the course of 18 months of negotiations with the US regulator, the cryptocurrency lender has failed to comply with existing financial laws. The agency was accused of failing to provide a clearer path forward to boost blockchain business in the country.
Nexo Off-Boards has clients in New York and Vermont
On the occasion of this development, Nexo said it has already taken its clients out of New York and Vermont. Furthermore, the lending company has discontinued its ongoing US filings, particularly with regard to the interest earned product. The company plans to stop access to this product in eight more states today.
"As of December 6, 2022, our Earn Interest Product will not be available for existing clients in eight additional US states - Indiana, Kentucky, Maryland, Oklahoma, South Carolina, Wisconsin, California, and Washington,” the firm stated.
However, he promised to allow customers in other countries to continue to access the product.
Moreover, the company explained that all active fixed terms will be automatically unlocked on December 6 without penalty, and all interest accrued up to the same date will be credited to users’ savings wallets.
This development comes just days after the cryptocurrency lender It was received Regulatory approval to operate as a virtual currency operator in Italy. Issued by Organismo Agenti e Mediatori (OAM), the approval allows Nexo to provide virtual currency issuance, transfer and exchange services and digital asset wallet services in the country.
Meanwhile, in its announcement, the cryptocurrency lender said that offering these services will comply with the regulatory framework in Italy.
It can be said that the recent closure of the cryptocurrency company is the result of strict regulation by the US authorities. The ongoing issue between Ripple Inc. and SEC It can be taken as another example.