News Sentiment: Negative
Nexo has announced that it would phase down its “Earn Interest” offering for US consumers beginning in April 2023. The decision was taken owing to the United States’ regulatory limits and licensing requirements.
The termination product is the commitment to complete regulatory compliance in all regions
According to Nexo, the termination of the “Earn Interest” product is consistent with the company’s commitment to complete regulatory compliance in all regions where it operates. The business stressed that it would continue to offer various other financial services to its US consumers.
By placing their digital assets into a Nexo account, US consumers could earn interest on them. The program was well-received by consumers, with many noting the company’s high-interest rates as a critical factor in their decision to utilize the service.
On the other hand, the withdrawal of the “Generate Interest” offering would disappoint many US consumers who have grown to rely on the service to earn passive income on their digital assets.
Nexo agreed to pay $45 million after being sued by the SEC
Nexo agreed to pay $45 million after being sued by the SEC for failing to register the offer and sale of the retail crypto asset loan product, which was initially launched in the United States in 2020. Nexo consented to an injunction barring it from breaching Securities Act registration rules without admitting or rejecting the accusations.
Nexo’s decision to withdraw its “Earn Interest” offering for US clients is consistent with the company’s dedication to regulatory compliance and safeguarding its clients’ best interests.
Reference: Nexo Blog “Update for US Clients”