Crypto lender Nexo will stop paying interest on new deposits from US customers

Nexo has announced a set of policy changes for US customers, a move that comes as the Securities and Exchange Commission reviews products and services in the crypto lending industry.

Through an email sent to customers and a statement on Nexo official subredditthe policy changes affect both existing and new accounts, with the company saying it “has voluntarily implemented changes to its product of interest in the United States to comply with recently announced guidelines.”

“Registered Nexo customers who currently earn interest on the platform will continue to do so only on their existing digital asset balances,” the company said, explaining:

“Reloads of your Nexo wallets made after today will not earn interest until the Earn Interest product restructuring and registration process with the relevant regulatory bodies is completed, in accordance with recently received guidelines. Once completed, all new accounts will be transferred to the Earn Interest 2.0 product and new top-ups will earn interest.Please note that if you withdraw any of the assets from your current balance, you will not be able to earn interest on them. here, even on their later return.”

For new accounts, “Nexo’s interest product in its current form will not be available to new customers, until the restructuring of the interest product and the registration process with the relevant regulatory bodies. be finalized, in accordance with the directives recently received”.

“The current changes only affect Nexo’s US Earn Interest product and have no impact on other Nexo products,” the statement continued. “Non-US customers are not subject to SEC guidelines and are not affected by any of these changes.”

The timing is remarkable given the evolution of SEC oversight of the crypto lending space. Earlier this week, crypto lender BlockFi settled with the SEC and state securities regulators for $100 million. The company also plans to register its BlockFi Yield product as a security.

SEC Chairman Gary Gensler has pointed to the crypto lending industry as one of the areas that federal authorities are scrutinizing.

In October, Nexo appeared to have come under scrutiny in the US state of New York, with crypto lending firm Celsius, according to unredacted letters that became available at the time.

Nexo did not immediately respond to a request for comment.

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