New Policies for Trying Times
Popular cryptocurrency lender, Nexo, has just revealed a new round of policy adjustments for its customers based in the United State. This comes on the heels of the Security and Exchange Commission’s current scrutiny of all products and services in the crypto trading space.
BlockCrypto, an online crypto publication, reported that according to emails sent out by Nexo to its customers, and a publication put on its subreddit, the policy will be effected on both existing Nexo accounts and new ones.
It should be noted that the company said that it is voluntarily implementing changes to its “Earn Interest Product” to US customers in order to comply with new directives. The note stated further that registered clients of Nexo who have been earning interests on the lending platform will continue to earn only on their digital asset balances that have been existing before now.
According to BlockCrypto’s report, Nexo’s publication went on to say that top-ups to clients’ Nexo wallets deposited after Friday will not be attracting any more interests till the “Earn Interest Product” restructuring and all registration proceeding with every relevant regulator in the crypto space have been completed. This is in accordance with the latest guideline issued by the Security and Exchange Commission.
As the Nexo note went further it stated that when all relevant registration processes have been completed, all newly registered accounts will be subsequently moved to the “Earn Interest Product” 2.0 platform where the new top-ups that will be done will begin to earn interest.
Yet, the note went on to warn that if customers carry out a withdrawal of any asset in their present balance, there will be no earned interest on such asset when they subsequently return.
Perfect Timing for Regulations?
The timing of the new Security and Exchange Commission policy for new registrations is a notable one given its evolving functions of oversight in the crypto lending and financing space. Big crypto lending firm, BlockFi, made a settlement with the Commission and state securities regulators worth up to $100 million early this week. The firm is also planning to register BockFi Yield as a security firm.
The SEC Chairman, Gary Gensler, made mention of the crypto sector as an area that the Federal agency is scrutinizing very closely.
Nexo was the object of close scrutiny in October 2021 in New York alongside Celsius, another crypto lending firm, according to letters that were made available to the public then.
Nexo is yet to respond to press queries.