A regulatory investigation will begin on Monday against Nexo, the British crypto lender. Eight U.S. states stated that it had reached an “end” with U.S. regulators during the past 18-months and would gradually end its operations in America.
The company stated that American regulators “refuse to provide a path to enable blockchain businesses.”
Nexo said that after 18 months of dialogue with U.S. regulators, and more than 18 months in good faith, the decision was made.
Over a year ago, regulators were alerted to the company’s alleged provision of interest-earning accounts via unregistered stocks. Nexo said that it was unable to find regulatory clarity as the primary reason it decided to leave America.
Nexo intends to ban users in eight states Indiana, Kentucky, Maryland, Oklahoma, South Carolina, Wisconsin, California and Washington from using interest-earning accounts.