Nexo withdraws from the US market
2022.12.05 14:38
Nexo withdraws from the US market
Budrigannews.com – UK-put together crypto bank Nexo said with respect to Monday it would deliberately transition away from its U.S. items and administrations throughout the next few months because of conflicts with controllers.
In a Monday blog post, Nexo stated, “Our decision comes after more than 18 months of good-faith dialogue with US state and federal regulators which has come to a dead end.”
Offering customers interest on the cryptocurrencies they deposit with the platform, crypto lenders function like banks for the cryptocurrency industry.
During the COVID-19 pandemic, the businesses expanded rapidly; however, as the cryptocurrency market plummeted earlier this year, a number of crypto lenders frozen withdrawals, resulting in significant losses for customers.
This year, Celsius, Voyager Digital Ltd., and BlockFi, all significant U.S. lenders, filed for bankruptcy.
Nexo was indicted in September by eight state regulators in the United States for allegedly failing to register its Earn Interest Product.
The interest-earning accounts Nexo offered, according to the Department of Financial Protection and Innovation of California, promised an annual interest rate of up to 36%. Nexo claimed that it did not advertise the high rate and that the 36% interest was only applicable to one asset.
Following the demise of the major exchange FTX last month, lawmakers all over the world have intensified their calls for the regulation of cryptocurrency businesses.
As Nexo leaves the United States, it said it would continue to process customer withdrawals “in real-time.”
