Nexo Calls It Quits - Why Regulatory Uncertainty Hurts US Crypto Users

The Part Time Economist

Over the past couple of years, we have seen the worst of the worst when it comes to crypto lenders. Celsius, FTX, and countless other firms have lost billions in customer funds and face accusations of mismanagement. So, if there was a cryptocurrency lender that could demonstrate proof of reserves, had a stable track record of safeguarding users' funds, and was working with regulators, one would think that regulators would welcome them with open arms and work together to forge a partnership between regulators and crypto that would show the world the true power of a properly regulated crypto lender. Unfortunately, we see that this is not the case, and crypto lender Nexo just announced it is leaving the US market. No, Nexo hasn't mishandled customer funds or lost billions. Despite working with regulators for over 18 months, they simply can't get a straight answer on how to comply with US cryptocurrency regulation, so they are calling it quits in the US market. In today's post, we will examine how a lack of regulatory clarity discourages honest cryptocurrency companies while encouraging the wreckless companies that don't care about regulations. #crypto #nexo #defi