While the bear market has taken hold, the loan and borrowing platform Nexo is taking several steps back and is announcing the closure of its services to United States citizens within a few months. In question, the difficulties in adapting to the sometimes ambivalent demands of the regulators.
Nexo ends its services in the United States
After 18 months of debates with the American authorities, the Nexo platform declared closing its services to its customers living in the United States within a few months.
The reason given by the company? Too strict regulation preventing it from continuing its activity. Despite Nexo’s goodwill during exchanges with the regulatory authorities, these discussions led to a ” dead end “.
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. 🧵
—Nexo (@Nexo) December 5, 2022
“Today we are announcing the regrettable but necessary decision that Nexo will phase out its products and services in the United States due to a lack of regulatory clarity. »
Furthermore, Nexo has declared that it is discontinuing its “Earn” product immediately. in eight states of the United States namely:
- Indiana;
- Kentucky;
- Maryland;
- Oklahoma;
- South Carolina;
- Wisconsin;
- California ;
- and Washington State.
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A too vague regulation?
In his press release, Nexo reconsiders its relations with the American authorities. He lists the many efforts made to adapt to the demands of American regulation.
While the discussions between the different actors were encouraging, the various collapses of the Terra (LUNA) ecosystem and the recent bankruptcy of FTX have caused opinions to change with certain regulatory authoritiesas Nexo points out:
“We have reached a situation where regulators do not want to coordinate with each other and insist on taking incompatible positions with each other, creating an impossible environment to operate effectively and create the expected value for our customers”
Remember that 2022 was a dark year for centralized lending and borrowing platforms: Celcius, Voyager Digital and BlockFi have all filed for bankruptcy.
Despite everything, Nexo wants to be reassuring about its clients’ funds : platform users are able to withdraw their assets at any time.
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Source: Nexo
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Always enthusiastic about new technologies, I gradually moved closer to activities related to Web3 during the year 2021. Over time, I wanted to add my stone to the building. It was then that I became an editor, with the aim of explaining cryptocurrency-related topics to as many people as possible.
Timothy Bourbotte
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