Nexo Phasing Out U.S. Products & Services After 18 Months of Regulatory Deadlock

Lender nexo today announced it will gradually phase out u.s. products and services. nexo, a digital asset platform, was involved in the announcement, which involves the halting of access to its earn interest product in eight states. this announcement comes after 18 months of the company talking with regulators, but the u.s. refusing to provide a path for enabling blockchain businesses.

Announcement was made today, and will affect customers in indiana, kentucky, maryland, oklahoma, south carolina, wisconsin, california and washington. in september, state securities regulators in california and several other states took action against nexo’s parent company nexo group, claiming the company’s earn interest product was an unregistered security.

Has so far managed to remain afloat unlike other crypto lenders such as blockfi, voyager, and celsisus, which have all collapsed following the fall of crypto project terra and digital asset exchange ftx. the company said that state and federal regulators had “inconsistent and changing positions” and that it now “cannot give our customers confidence that regulators are focused on their best interests.” nexo is one of 22 investors in decrypt.

By Evey Lovelace

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