Nexo suspends interest payments for US customers

The crypto-lending platform Nexo said it would suspend the accrual of interest on the Nexo Earn Interest product for new US customers. For residents of other countries, the terms remained unchanged, according to the firm’s support account on Reddit.

For existing US customers, Nexo Earn Interest will not accrue interest on new top-ups. According to a notice received from the firm, subscribers will later be migrated to Earn Interest 2.0, and new deposits will begin to earn interest. The restructuring of the product envisages its registration with the SEC.

The company said it had ‘voluntarily made changes’ to ‘comply with recently announced recommendations’.

The decision may have followed the settlement of claims by the SEC and state financial regulators, with BlockFi as Nexo’s competitor. The platform pledged not to provide US residents with services related to the savings accounts BIA. It will also pay $100 million in fines. In the future BlockFi announced plans to register a new product in the US.

In September 2021, the SEC warned Coinbase, a Bitcoin exchange about possible legal action if it launched crypto-savings accounts based on USD Coin (USDC). Subsequently the company abandoned its plans.

In January 2022, media reported that the Commission was investigating lenders Voyager, Gemini and Celsius Network. Regulators were allegedly examining the legality of offering interest on deposits in digital assets.

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