Crypto Lender Nexo Halts Interest on New Deposits for US Customers
Nexo Terminates Interest Payment on New Deposits from Americans
In a statement posted to its official subreddit on Friday, Nexo stated that it "voluntarily implemented changes to its Earn Interest Product in the U.S. to comply with newly-announced guidance."
However, Nexo clarified that non-American clients are “not subject to the SEC’s guidance and remain unaffected.” In the meantime, existing customers from the U.S. will keep earning on the balances they hold, however, new clients from the US cannot earn interest on newly added balances.
Nexo eventually plans to restructure the product and make a new offering available that is compliant with the securities laws.
“Our team and legal advisers are working around the clock to develop solutions for our U.S. clients that will make the earn interest product 2.0 as widely accessible as possible and compliant with the new regulatory realities,” the company added.
US Regulators Suspicious of High-Yield Crypto Lending
Earlier this week, crypto lender BlockFi settled with the U.S. SEC and state securities regulators for $100 million over its high-interest yield product. Meanwhile, state securities regulators in Kentucky and Alabama sent warnings to another crypto lending company Celsius over a similar product.
The US regulators are of the view that crypto savings products that offer interest “are not as safe as bank or credit union deposits.”
