Popular crypto lending platform Nexo has announced that it plans to phase out ‘its products and services in the United States in a gradual and orderly fashion over the coming months.’

18 Months of Dialogue with Regulators Has Come to a Dead End

The team at Nexo explained that the decision was reached after 18 months of trying to agree with U.S. state and federal regulators concerning a way forward for its products.

According to Nexo, regulators had initially shown promising signs of cooperation and finding a sustainable path forward. But the regulators ‘are unwilling to coordinate with one another, and are insistent on taking positions that are inconsistent with one another, creating an impossible environment to operate efficiently and to create the expected value for our client.’

In addition, the Nexo team pointed out that they have tried to engage state and federal regulators, have constantly provided requested information and even tried to modify its business in response to their concerns proactively.

‘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,’ stated Nexo.

Nexo Has Off-boarded Clients in 2 States With Similar Plans for 8 Others

So far, Nexo has off-boarded its clients in the states of New York and Vermont between 2021 and 2022. They have also suspended new account registrations for all U.S clients for its Earn Interest Product to meet regulatory requirements in the two states.

Beginning December 6th, Nexo’s Earn Interest Product will not be unavailable for its existing clients in eight more states: Indiana, Kentucky, Maryland, Oklahoma, South Carolina, Wisconsin, California, and Washington.

However, Nexo users in the eight states will still have access to regular Nexo products.

Nexo to Continue Honouring Withdrawals

Concerning customer funds, Nexo reiterated that the platform continues to process withdrawals in real-time so that ‘customers have uninterrupted access to their assets.’