Crypto lender Nexo to quit United States

Due to disagreements with regulators, UK-based cryptocurrency lender Nexo announced on Monday that it would gradually stop offering its products and services in the United States.

In a blog post on Monday, Nexo stated that "our decision comes after more than 18 months of good-faith communication with US state and federal officials that has come to a dead end."

When it comes to the cryptocurrency realm, crypto lenders operate like banks, giving their clients interest on the cryptocurrencies they deposit on their platform.

During the COVID-19 pandemic, the businesses expanded quickly, but when the cryptocurrency markets crashed early this year, a number of lenders frozen withdrawals, leaving consumers with significant losses. This year, significant U.S. lenders Celsius, Voyager Digital Ltd, and BlockFi have all declared bankruptcy.

In September, Nexo was accused of failing to register its Earn Interest Product by eight U.S. state regulators.

According to the California Department of Financial Protection and Innovation, Nexo's interest-earning accounts offered interest rates of up to 36% annually. Nexo claimed that the 36% interest rate only applied to one asset and that the high rate was not advertised.

Following the collapse of the important exchange FTX last month, legislators from around the world have increased their calls for regulation of cryptocurrency companies.

As it exits the United States, Nexo stated it will still process customer withdrawals "in real-time."