Nexo, a cryptocurrency lending startup, has terminated interest-bearing services for new clients from the US. According to a thread on Reddit, the changes affect the Earn Interest Product for US citizens and residents. Non-US clients are not affected by any of these changes, a spokesperson for Nexo emphasized. Officially it remains unclear though what was the reason behind the changes.
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The move comes after the US Securities and Exchange Commission (SEC) initiated an investigation in November last year against BlockFi over its product that pays customers high-interest rates for lending out cryptocurrency. According to reports, the watchdog was trying to find out whether the company's accounts are akin to securities. Later, the SEC said BlockFi is ready to pay a $100 million fine for failing to register its crypto lending product.
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