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Nexo, a leading crypto lender based in the UK, has announced a phased exit from the United States.
The latest Nexo news comes just a few months after the company revealed a stake in a US-based bank as it sought to bolster its presence in the country. But as noted on Monday, the decision to leave the market follows more than a year and half of “good-faith dialogue” with US regulators that unfortunately failed to bear any meaningful progress.
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Nexo begins “phased exit” from the US
According to the UK-based crypto lender, the plan is to have a gradual exit that will see the company’s products and services removed over the next few months.
The crypto platform says it has often taken steps towards regulatory compliance as required by both state and federal regulators. A good example is Nexo’s move to off-board customers from two US states – New York and Vermont. Nexo also halted the registration of new clients to its Earn Interest Product for all customers in the US.
But despite its proactive approach and response to regulatory concerns, the story has been different from the US’ part. The Nexo team wrote in a blog post announcing the exit:
“It is now unfortunately clear to us that despite rhetoric to the contrary, the US refuses to provide a path forward for enabling blockchain businesses and we cannot give our customers confidence that regulators are focused on their best interests.”
While the Earn product is now unavailable to US customers in an additional eight states – Indiana, Kentucky, Maryland, Oklahoma, South Carolina, Wisconsin, California, and Washington – all other products and services will continue until otherwise communicated, the team added.
The company says customer withdrawals will continue normally, with all active Fixed Terms automatically unlocked at no cost or penalty to clients. Nexo will also credit users’ savings wallets with any accrued interest as of 6 December, 2022.
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