After an unexpected event, crypto lender Nexo will immediately restrict Earn in some American states.
The company stated that it would stop accepting new Earn product registrations and immediately disable access to its "Earn Interest Product" in eight U.S. states.
On December 5, cryptocurrency lender Nexo made the announcement that it would cease operations in the United States shortly. The business made it clear that it would stop accepting new registrations for its Earn product and would immediately disable access to its "Earn Interest Product" in eight U.S. states.
According to Nexo's official statement, the company had previously removed Earn customers from Vermont and New York at the regulator's request. The announcement continues, Our decision follows more than 18 months of sincere communication with US state and federal agencies, which has reached a standstill.
The company also notes that existing customers in eight more U.S. states - Indiana, Kentucky, Maryland, Oklahoma, South Carolina, Wisconsin, California, and Washington - won't be able to access its Earn Interest Product after December 6, 2022.
The latest FTX fiasco, according to Nexo, has made it "difficult" for the company to continue its operations, despite the fact that authorities initially welcomed their collaboration and a road toward sustainability did appear plausible.
It is with a heavy heart that we begin the slow and orderly withdrawal from the US given the difficulties of the convoluted and conflicting US regulatory regime, according to the announcement.
Earlier, Nexo's interest-earning accounts provided interest rates of up to 36% annually, according to the California Department of Financial Protection and Innovation. Later, Nexo asserted that the high rate was not publicised and that the 36% interest rate only applied to one asset.
Nexo, a cryptocurrency lender, claimed it will continue to process customer withdrawals "in real-time" while it gradually closes down operations in the U.S., despite the fact that it did not specify a specific date for its overall exit from the country.
