Cryptocurrency lender Nexo will pull out of the U.S. market “due to a lack of regulatory clarity,” according to the company’s Twitter announcement on Monday.
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- “Our decision comes after more than 18 months of good-faith dialogue with U.S. state and federal regulators,” wrote the company, adding that Nexo has adjusted its business in response to regulatory concerns “despite their inconsistent and changing positions.”
- “Initially, regulators encouraged our cooperation and a sustainable path forward seemed viable, but recent events and the subsequent change in regulators’ behavior point to the opposite.”
- During 2021 and 2022, Nexo off-boarded clients from the states of New York and Vermont and suspended new registrations from all U.S.-based clients of Nexo’s ‘earn-interest product,’ to meet regulatory expectations.
- As of Dec. 6, the ‘earn-interest product’ will be unavailable to existing clients in eight additional states: Indiana, Kentucky, Maryland, Oklahoma, South Carolina, Wisconsin, California, and Washington.
- Nexo “will continue processing withdrawals in real-time so that customers, as always, have uninterrupted access to their assets.”
- Nexo’s token shed 5.4% of its value within the past 24 hours, trading at US$0.65 at 6:45 p.m. in Hong Kong.