Nexo intends to gradually cease operations in the United States "over the next few months," according to a blog post published on December 5th 2022. The company stated that leaving the United States is "regrettable but necessary."
Nexo stated in the post that it has been in discussions with US regulators for 18 months in order to determine how to comply with US financial laws. The company and US officials have not yet reached an agreement. The firm said it reached its decision after more than 18 months of good-faith discussions with US state and federal regulators.
"Although rhetoric implies otherwise, it is now apparent that the United States is refusing to provide a path forward to enable blockchain businesses, so we cannot assure our customers that regulators are paying attention."
Nexo also announced that it has deactivated customers from New York and Vermont and has halted new registrations for the platform's Earn Interest product in the United States. Furthermore, current customers in eight other states will lose access to the Earn Interest product after December 6, 2022.
Existing customers in other states will continue to have access to the product for the time being. Following the collapse of the crypto exchange FTX, US regulators have come under fire in recent weeks. Some lawmakers in the United States have argued that regulators should be given greater authority to monitor cryptocurrency exchanges.
However, some industry executives contend that overregulation is driving US investors to offshore exchanges with higher risk. The company announced that it would discontinue its Earn Interest Product in eight states—Indiana, Kentucky, Maryland, Oklahoma, South Carolina, Wisconsin, California, and Washington—as of tomorrow and that U.S. customers would no longer be able to sign up for the Earn product.
According to the company, account access and withdrawals will be unaffected. In September, state securities regulators in California and several other states filed charges against Nexo's parent company, Nexo Group, alleging that the company's Earn Interest Product was an unregistered security.
