Thursday, September 29, 2022
HomeLaw & PoliticsNexo decides to stop paying interest on new deposits from US clients

Nexo decides to stop paying interest on new deposits from US clients

The SEC cracked down on the crypto lending platform Blockfi last week, fining the business $100 million in penalties. New Jersey, Kentucky, Texas, Alabama, and Vermont are among the states that have warned Blockfi about the company’s interest-bearing accounts. The announcement came after the warnings.

Some states issued cease and desist orders, ordering the company to stop offering Blockfi Interest Accounts (BIAs) by a certain date. After the US Securities and Exchange Commission levied fines on Blockfi, the crypto lending firm Nexo said that “great savings news” was coming for people in the United States.

According to Nexo Josh, the Reddit moderator of the subreddit r/nexo, U.S.-based Nexo customers will be seeing some new improvements to the Nexo savings programme that bear interest. Nexo Josh said that the corporation “voluntarily introduced adjustments” to its earn interest programme in the United States in order to “comply with newly-announced advice.”

According to Nexo’s representative, non-U.S. customers are “not subject to the SEC’s recommendations and remain unaffected.” Existing US customers will continue to receive interest on their accounts. However, Americans will not be able to earn interest on newly added balances.

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Jeewan Singh
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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