Crypto Lender Nexo Announces Gradual Departure from United States

In a Monday release, Nexo explained the reason for its departure from the United States by claiming that despite 18 months of discussions with authorities, the U.S. refuses to create a way for allowing blockchain enterprises. The company specifically mentioned a recent rush by federal and state regulators to look into Nexo's "Earn" product.

Crypto Lender Permit Regulatory Agencies In CFPB Plea

The Consumer Financial Protection Bureau (CFPB) ruling last Thursday claiming it had jurisdiction to examine its Earn Interest Product, which the SEC and state authorities have concurrently claimed is security susceptible to their jurisdictions, made this abundantly evident, according to the firm's release. The crypto lender contended that only regulatory agencies had authority over the product in a plea to the CFPB on Thursday, asking it to end an inquiry into the offering.

The Earn Program

The Earn program, like many cryptocurrency lending sites, theoretically mimics a bank account with better returns. However, the SEC has objected to comparable goods, and Nexo referenced a $100 million punishment against BlockFi in its request for the CFPB to end an inquiry. In September, the corporation received letters of stop and desist from state regulators, who occasionally work in coordination with federal authorities.

Earlier this year, Nexo, which conducts a substantial percentage of its business in Bulgaria, stated that it would stop paying interest on new Earn deposits from the United States.