Nexo is making moves to leave the U.S. market and to stop its product selling to U.S. customers.
Nexo is one of the leading institutions that lend crypto to the digital finance industry. Nexo had previously in 2018 spoken out about their disappointing participation in the discussion with federal and state regulators which has been running for 18 months now.
The company earlier today said that they are announcing the regrettable but necessary decision of phasing out its products and services in the United States in a gradual and orderly fashion over the coming months.
The negotiations between the two parties have been going on for above a year and a half. Regarding this, the firm commented that it was about making available vital information and issuing operational notifications that would address the concerns of the regulators.
Nexo on its official blog wrote that it has become unfortunately clear for them that despite the rhetoric to the contrary, the U.S. refuses to provide a path forward for enabling blockchain businesses and the company cannot afford to give their customers confidence that regulators are focused on their best interests.
Nexo also addressed the controversy regarding their violations that surfaced earlier in September of this year. Nexo was allegedly supposed to be involved in a law violation after gaining the trust of investors by wrongly claiming to be a registered platform with a valid license.
South Carolina, Washington, Kentucky, New York, Maryland, California, Vermont, and Oklahoma made a massive attempt on suing Nexo citing the alleged offer of interest-earning accounts that made use of securities that were not registered.
The investors had critically reviewed and posed questions about the company’s crypto exchange health and the transparency maintained in the balance sheets.
Antoni Trenchev the co-founder and managing partner of the company in an interview commented that according to the company they consider themselves as one of the better examples of transparency in the blockchain space.
The company on addressing this issue said that they have suspended registrations for new accounts from the U.S. which were directed towards the company’s Earn Interest Product. Also, the termination of the clients based on the states such as New York and Vermont was in order to appear cooperative to the regulators.
Nexo further said that the regulators and the company are on different pages. This comment was made by them because of the persistent position taken by them which made them not an ally with others.
Nexo also viewed that there is no more a healthy environment needed for the best functioning of a business. The present condition was viewed as business un-friendly.
Nexo was founded in 2017 as a cryptocurrency lending platform. It also provides loan services. And is a platform that allows clients to earn interest on their crypto deposits.
There is an option of availing Instant Crypto Credit Line and borrowing cash or stable coins on utilizing the cryptocurrency holdings as collateral.
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The crypto lending segment of the market has witnessed the major firms including Celsius Network, Voyager Digital, and BlockFi filing for bankruptcy protection which left thousands of their customers as creditors in the Chapter 11 proceedings which is life now.
Voyager and Celsius had frozen their customer accounts in June to which Nexo reacted. The reaction consisted of showing off their financial resilience. They also proceeded to make a proposal of acquiring the reportedly qualifying assets of Celsius.
Nexo also made use of the opportunity to point out to the customers that they have daily attestation proof of its liabilities. Regarding this Trenchov said that the company has gone the extra mile of showing that the company assets exceed its liabilities.
According to the company website, on November 29, an offer of above 10 % APY on particular crypto deposits was displayed. The average customer of the company earns a much less percentage as the company does not rely on outside financing.
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