Nexo, a crypto lender based in Switzerland, has announced plans to close its American operations.
The crypto lender says The United States’ regulatory and policy landscape influences the decision.
Withdrawals will continue to be processed in “real-time,” according to Nexo.
“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.
As we effectuate our orderly exit from the US, Nexo’s payment specialists have been informed and will continue processing withdrawals in real-time so that customers, as always, have uninterrupted access to their assets.”
Nexo has announced that its Earn Interest product, which offers yield on digital asset, will be ending in eight US States starting Tuesday. According to the crypto lender, other products will still be available in the eight states.
“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.
These changes will only impact the availability of the Earn Interest Products for citizens and residents in the eight mentioned states. These clients will continue to enjoy access to all other Nexo products, available in these jurisdictions, until further notice.”
According to the crypto lender, its decision to leave the US was reached after months of dialogue and discussions with regulators. During this time, Nexo had stopped offering its products in certain states.
“Our decision comes after more than 18 months of good-faith dialogue with US state and federal regulators. Nexo has made significant, ongoing efforts to respond to their concerns by actively changing its business model in spite of their inconsistent and shifting positions.
As part of our cooperative approach with regulators, during the course of 2021 and 2022, we have off-boarded clients from the states of New York and Vermont and have suspended new registrations for all US clients for our Earn Interest Product to meet regulators’ expectations.”
State regulators in Washington, Kentucky, Maryland and New York accused Nexo of violating securities law by selling the Earn Interest Product.
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