Nexo decides to phase out its activities in the United States, a decision as regrettable as necessary according to the team. This gradual departure will take a few months and will have already started on December 6.
Departure of Nexo from the United States: regulatory vagueness to blame
It is in a press release published on its blog that Nexo announces the sad news. The platform claims to have no choice but to stop its activities in the United States. The London-based exchange manages the assets of over 3 million users in nearly 200 jurisdictions. Why leave the United States? The company discusses the difficulties and challenges relating to local regulations which it describes as “confusing and contradictory”.
The crypto lender says it has been in talks with US regulators for almost a year and a half. But the two parties could not find common ground. The lack of clear regulations no longer allows Nexo to offer its services in the United States. Moreover, the platform has already suspended new registrations of all American customers.
The platform provides for a gradual departure
Nexo has not officially released a timeline for shutting down operations. Nevertheless, the platform spoke of a gradual departure. Nexo already withdrew Earn Interest from New York and Vermont some time ago at the request of regulators. As of the day after the announcement (December 6), this product will no longer be available in eight other states, namely Indiana, Kentucky, Maryland, Oklahoma, South Carolina, Wisconsin, California and Washington.
The final cessation of Nexo’s activities in the United States is not determined, but the process should take a few months. This delay would allow it to continue to process customer withdrawals. After the collapse of FTX, US regulators became increasingly intransigent. Lawmakers are even willing to give them more powers to further oversee cryptocurrency exchanges.
The collapse of FTX and the fall in the value of cryptos has raised questions about the future of cryptos and the blockchain ecosystem more generally. This will definitely lead to more regulations and changes. Let’s just hope it’s in favor of investors and the crypto industry as a whole.
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