LONDON Reuters UK-based cripto lender Nexo said on Monday it would phase out its U.S. products and services over the next few months due to the clashes with regulators.
Our decision comes after more than 18 months of good-faith dialogue with US state and federal regulators which have come to a dead end, Nexo said in a blog post on Monday.
Customers can deposit interest on cryptocurrencies with the help of a lender that is a bank for the criptocurrency world.
During the COVID 19 flu, the firms grew rapidly, but as the markets slumped earlier this year, some crypto lenders froze withdrawals, leaving customers with large losses. Major U.S. based lenders Celsius, Voyager Digital Ltd and BlockFi have filed for bankruptcy this year.
In September, eight U.S. state regulators charged Nexo with failing to register its Earn Interest Product.
California's Department of Financial Protection and Innovation said Nexo's interest-earning accounts promised an annual interest rate as high as 36%. Nexo said that the interest was only applicable for one asset and that it did not advertise the high rate.
After the collapse of FTX last month, lawmakers around the world have stepped up calls for regulation of firms in the field of digital currency.
As it withdraws from the United States, Nexo will continue to process customer withdrawals in real-time.