Nexo Reenters the US Market with a New Compliance-Focused Model
- Nexo paid a $45 million settlement in January 2023 to the SEC for offering unregistered securities through its Earn Interest Product (EIP).
- In its new model, Nexo partners with licensed US entities and SEC-registered investment advisers to offer crypto-backed loans and yield products.
- The partnership with Bakkt, a regulated US crypto firm, is central to Nexo’s compliance strategy, moving from a direct issuer model to a partner-delivered framework.
- Nexo’s updated structure eliminates the previously targeted EIP and focuses on integrated services within regulated infrastructures.
- This shift comes amid evolving regulatory landscapes in the US, allowing for more adaptable compliance measures.
Nexo’s return signifies a potential transformation in US crypto lending practices, emphasizing compliance and regulatory alignment following past enforcement actions against yield products. Users should remain vigilant about custody practices and counterparty risks when engaging with these offerings.
With its new compliance-focused approach, Nexo aims to provide secure crypto-backed loans while addressing previous regulatory concerns highlighted by the $45 million settlement in early January. (Source)
