Crypto lending platform Nexo has just announced it has decided to suspend its operations in the US due to increasing pressure from regulators.
Representatives of the company have called this step “sad, but necessary”:
“Our decision comes after more than 18 months of good faith dialogue with national and state regulators. Despite their inconsistent, shifting positions, Nexo has consistently made significant efforts to significantly reshape the business.”
The company has closed access to the platform for users in New York and Vermont, and has also restricted the use of the Earn product by US residents.
According to the blog post:
“Everything became very clear after the decision of the Consumer Financial Protection Bureau last Thursday. It states that the department has the authority to examine the use of our Earn product, which the SEC and state regulators have insisted along the way is a security.”
