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It catches America’s lack of regulatory clarity on crypto. Carpet pulling scams have been allowed to run wild and looted millions from investors. Hackers are even more flush with exploits. Tax laws remain vaguely confusing, the Internal Revenue Service (NEXO-USD)) will severely crack down on those who do not file correctly. All these factors and more hamper a market in the United States possible Leverage it to your advantage. But instead, companies are starting to close up shop in America. The latest to flee the states is DeFi service provider and crypto maker NEXO Nexo (
Nexo is one of the world’s leading crypto lenders. The UK-based company has been one of the few to weather the storm of volatility well this year. While the company has been criticized for some of its practices in the past, it is one of the more popular alternatives to chain custody.
However, American users will not be able to use Nexo’s services in the near future. The company announced on Monday that it plans to withdraw its products and services for American customers.
The decision comes after 18 months of talks between Nexo and US regulators. These conversations, according to Nexo, “have come to an end”, prompting its decision to withdraw. It adds that regulators have left “inconsistent and changing positions” in the market. It adds that users cannot be promised that these regulators will act in the best interests of investors. This week, it will begin the process by closing US-based registrations for its earning interest product. It will then remove existing users’ access state by state.
Others may follow NEXO Crypto and leave the US
Nexo’s decision to withdraw its NEXO crypto services from the States is not necessarily surprising. It certainly isn’t the first time a company has chosen to cut US customers from its operations. Could other companies follow Nexo’s lead?
To find another example of a company that doesn’t want to deal with US regulators, one need only look at the world’s largest crypto company. Binance (BNB-USD), the biggest name in crypto trading, operates in almost every country in the entire world – yes, America is one of the seven countries where Binance does not operate, along with countries like Iran, Yemen and North Korea.
American investors using Binance are actually using Binance.US, a sister company to Binance with its own executive team and completely independent operations from global Binance. In 2019, the US made a knee-jerk decision that Binance would host unregistered securities on its exchange. The company, after an already tense relationship with regulators, created Binance.US to launch US users and deal with these same regulators. Since then, Binance.US has been the agency entrusted with dealing with emergency decisions made by regulators regarding any project.
In fact, Nexo’s decision follows a string of companies that have chosen to serve everyone except For the US and, like Nexo, many of these companies have made their decisions due to the lack of regulatory clarity in the country regarding crypto. Even the disgraced FTX It had a US branch separate from its parent company due to regulatory concerns. Without any regulatory framework, the US appears to be squandering the opportunity to attract top companies to the states.
At the date of publication, Brendan Rearick There were no positions (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the writer subject to InvestorPlace.com publication guidelines.