Cryptocurrency lending platform Nexo has announced that it will stop paying interest on new deposits from US customers.
Earlier this month, the SEC fined $100 million on cryptocurrency lending platform BlockFi, which was accused of offering illegal high-interest-yielding crypto products.
Following this penalty, BlockFi decided to completely stop offering interest-bearing products to Americans.
Taking action without facing any investigation or penalty after the BlockFi decision, Nexo sent an e-mail to its customers about this issue.
Nexo said in its statement that it “voluntarily implemented changes to the Interest Earning Product in the US to comply with newly announced laws,” and that the policy change affected both existing accounts and new accounts.
“Funds to your Nexo Wallets after today will not earn interest until after the restructuring of the Interest Earning Product and registration with the relevant regulatory authorities according to the recently received guidance.
Registered customers of Nexo who are currently earning interest on the platform will continue to do so only on existing digital asset balances.”
This means that current US customers of Nexo will not be able to earn interest on new deposits, they can only continue to earn on existing digital asset balances.
In addition, this change of Nexo is only valid for US customers, in this context, customers outside the US will not be affected by this change.
Nexo added at the end of its statement that it plans to introduce new amendments to comply with securities laws.
In this context, the changes announced for US customers will be effective “until the restructuring of the Interest Earnings Product and registration process with the relevant regulatory authorities is completed”.