Crypto platform Nexo plans to shut down US operations

NEXO will be phasing out its products and services in the United States in the coming months.

The cryptocurrency management and lending platform said on Monday (December 5) blog entry that the decision follows an 18-month dialogue with state and federal regulators that has reached a “dead end,” despite the company providing requested information and changing its business practices to address their concerns.

“Unfortunately, it is now clear to us that despite rhetoric to the contrary, the US is refusing to find a way forward to enable blockchain businesses, and we cannot give our customers confidence that regulators are focused on their best interests ‘ Nexo said in the post.

The company said it would phase out its offerings in the U.S. in a “gradual and orderly” manner. As it ends the availability of certain products, it will continue to provide access to other products until further notice and will continue to process payouts in real time, allowing customers to continue having uninterrupted access to their assets, the Post said.

“We firmly believe that blockchain is a transformative technology, and recognizing its importance is akin to recognizing the value of the internet in the early 2000s – it has immense economic and geopolitical significance,” Nexo said in the post. “For our part, we will devote our time and effort to developing products and services for jurisdictions that understand the importance of blockchain technology in a rapidly digitizing world.”

The announcement comes about two months after Reuters reported that eight US state regulators had indicted Nexo for failing to do so to register its interest income product.

Regulators from New York, California, Kentucky, Maryland, Oklahoma, South Carolina, Washington and Vermont all filed administrative lawsuits against the company, arguing that its accounts should qualify as securities and be registered that way, the report said.

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