{"id":72609,"date":"2023-01-17T09:32:54","date_gmt":"2023-01-17T07:32:54","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=72609"},"modified":"2025-09-09T09:19:46","modified_gmt":"2025-09-09T06:19:46","slug":"nexo-sues-cayman-islands-regulator-over-license-rejection","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/nexo-sues-cayman-islands-regulator-over-license-rejection\/","title":{"rendered":"Nexo sues Cayman Islands regulator over license rejection"},"content":{"rendered":"<p>The cryptocurrency-lending platform Nexo challenged in court the Cayman Islands Monetary Authority&#8217;s rejection of its license application to operate with virtual assets. <a href=\\\"https:\/\/www.theblock.co\/post\/202614\/nexo-sues-cayman-islands-regulator-over-rejected-license\\\"> The Block<\/a> reports this.<\/p>\n<p><!--more--><\/p>\n<p>The regulator cited the mismatch between the company&#8217;s business model and the required risk profile as the reason for the rejection.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cNexo posed a risk to market confidence, consumer protection and the Cayman Islands\u2019 reputation as a financial centre,\u201d the statement said.<\/p>\n<\/blockquote>\n<p>The regulator noted the lack of disclosure of information about potential<a href=\"https:\/\/forklog.com\/en\/news\/eight-us-regulators-file-lawsuits-against-nexo\"> violations of regulatory requirements in the US<\/a> and proceedings in the UK.<\/p>\n<p>Nexo&#8217;s representatives said the regulator&#8217;s decision was \u2018procedurally unfair\u2019 \u2014 it breaches constitutional and statutory duties by failing to justify the reason.<\/p>\n<p>Lawyers stressed that the platform had taken the regulator&#8217;s concerns into account during the application process. They added that the lawsuit against the firm and its former employee regarding an account on the crypto-derivatives exchange was filed by BitMEX.<\/p>\n<p>The platform intends in court to overturn the regulator&#8217;s decision and obtain the corresponding licence.<\/p>\n<p>In January Bulgarian authorities <a href=\"https:\/\/forklog.com\/en\/news\/nexo-hit-by-client-outflows-after-raids-on-bulgarian-office\">conducted searches<\/a> at Nexo&#8217;s local office as part of an investigation into potential <span data-descr=\\\"anti-money laundering\\\" class=\\\"old_tooltip\\\">AML<\/span>-policy. The platform plans to seek compensation for the damages through the courts.<\/p>\n<p>In December Nexo<a href=\"https:\/\/forklog.com\/en\/news\/nexo-to-exit-the-u-s-market\"> announced<\/a> a \u201cgradual winding down\u201d of operations in the United States due to regulatory pressure.<\/p>\n<p>Follow ForkLog\u2019s bitcoin news on our <a href=\\\"\/\/telegram.me\/forklog\u201d\\\" target=\\\"\u201c_blank\u201d\\\" rel=\\\"\u201cnofollow\u201d noopener\\\">Telegram<\/a> \u2014 crypto news, rates and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nexo challenged in court the Cayman Islands Monetary Authority&#8217;s rejection of its license application.<\/p>\n","protected":false},"author":1,"featured_media":72610,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1969,1162,1315],"class_list":["post-72609","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cayman-islands","tag-court-cases","tag-nexo"],"aioseo_notices":[],"amp_enabled":true,"views":"16","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/72609","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=72609"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/72609\/revisions"}],"predecessor-version":[{"id":72611,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/72609\/revisions\/72611"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/72610"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=72609"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=72609"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=72609"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}