Crypto lending service Nexo announces its exit from the US market

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Major lending platform Nexo has announced a gradual withdrawal from the US market.The reason was the "deadlock in conversations with regulators" and claims from the supervisory authorities of many states.

In a statement, Nexo representatives separately noted the attention of regulators to the Earn product, which allows users to earn income on their deposits.On Dec. 1, the Consumer Financial Protection Bureau (CFPB) rejected Nexo's petition to drop the investigation into the Earn product, as it is subject tosupervision by securities regulators.

"Regulatory pressure has become evident since the CFPB's decision declaring the need to determine the jurisdiction to investigate our interest-bearing product.At the same time, the U.S. Securities and Exchange Commission (SEC) states that the productIn addition, securities regulators from several states with whom we have been working for several months have stumped us by suing without warning," the company said in a statement.

At the beginning of the year, Nexo blocked interest payments for new US users.However, this did not help the company avoid prosecution by US regulators.