Nexo Resumes Operations in the United States
Crypto-based NFT platform Nexo is back in the U.S. after a 2-year hiatus
Nexo, the digital asset lending platform managing $11 billion, is making a comeback to the States, bringing a plethora of services like high-yield savings accounts and credit products. The comeback is attributed to a more welcoming regulatory environment for digital assets, according to Nexo co-founder Antoni Trenchev.
In a statement, Trenchev praised former President Donald Trump's administration for encouraging innovation and making America a pioneer-friendly nation. At a press conference in Bulgaria, Trenchev announced the return alongside Donald Trump Jr., stating, "America is back, and so is Nexo."
The crypto-friendly atmosphere under Trump's leadership likely played a significant role in Nexo's decision to return. Nexo plans to cater to both individual and corporate clients with high-yield savings products, asset-backed credit lines, and advanced service solutions.
Nexo had to leave the U.S. in 2023 due to issues with its Earn Interest Product and the fallout from the collapse of FTX exchange, triggering regulatory pressure on crypto-based lending platforms. Nexo vowed it would not operate in an "unsustainable environment" following actions taken by states like California and New York.
However, recent conversations with the Securities and Exchange Commission (SEC) have indicated a more welcoming stance towards digital assets. The constructive dialogues have encouraged Nexo to re-enter the U.S. market, capitalizing on the current crypto optimism. In the past two years, Nexo has been rebuilding and enhancing its operations and compliance procedures, paving the way for its return.
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1. Constructive conversations with the SEC and other regulators regarding digital assets have indicated a more welcoming approach towards cryptocurrencies.[2][3][4]2. The optimism surrounding cryptocurrencies was boosted by the Trump administration's crypto-friendly moves, such as creating a strategic crypto reserve.[1][4][5]3. While Donald Trump Jr. did not directly aid Nexo's return, his presence at a conference hosted by Nexo in Bulgaria helped amplify the importance of crypto in the U.S.[2][3]4. In January 2023, Nexo paid a $45 million fine to the SEC and state regulators due to its unregistered crypto lending product, the Earn Interest Product (EIP), leading to the company ceasing operations for American customers.[3][4]5. During its absence, Nexo focused on rebuilding its operations and engaging with regulators constructively, enhancing its compliance and product offerings in preparation for its return.[2][4]
- preparations for its return, Nexo has been rebuilding and enhancing its operations and compliance procedures in the past two years.
- The comeback of Nexo to the U.S. is being fueled by the current optimism and the constructive dialogues with the Securities and Exchange Commission (SEC) regarding digital assets.
- In 2023, Nexo had to leave the U.S. due to issues with its Earn Interest Product (EIP) and the fallout from the collapse of the FTX exchange, triggering regulatory pressure on crypto-based lending platforms.
- Nexo co-founder Antoni Trenchev has attributed Nexo's comeback to the more welcoming regulatory environment for digital assets, praising the Trump administration's encouragement of innovation and making America a pioneer-friendly nation.
