Regulation
Reading time: ~2 m
Nexo, a digital asset platform, has announced that it will be phasing out its products and services in the United States due to a lack of legal clarity.
The company said in a statement that it has been in good faith dialogue with US state and federal regulators for more than 18 months. However, recent events and subsequent changes in regulator behavior have prompted Nexo to make this decision.
Nexo has excluded New York and Vermont customers and suspended new registrations for all US customers for its Earn Interest product.
The company hoped that this would meet regulatory expectations and maintain its presence in the US market. However, this was not the case.
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
Effective December 6, 2022, the Earn Interest product will be unavailable to existing customers in eight additional US states: Indiana, Kentucky, Maryland, Oklahoma, South Carolina, Wisconsin, California, and Washington.
These immediate changes only affect the experience of using the Earn Interest product for citizens and residents of the eight states listed above. These customers will continue to enjoy access to all other Nexo products available in these jurisdictions until further notice.
Nexo said it will now devote its time and efforts to developing products and services for jurisdictions that understand the importance of blockchain technology in a rapidly digitizing world.
The company has assured its customers that it has kept its payment professionals informed and will continue to process withdrawals in real time so that customers have uninterrupted access to their assets.
The decision to phase out its products and services in the United States is unfortunate but necessary for Nexo.
Despite a collaborative approach with regulators and efforts to actively change its business in response to their concerns, the company has not been able to find a sustainable path in the US market.
#Nexo #phasing #products #services #due #lack #legal #clarity
