Crypto lending platform Nexo has challenged in court the Cayman Islands Monetary Authority's rejection of an application for a license to trade virtual assets.
The regulator reportedly refused to grant the relevant license to the company due to the alleged inconsistency of the firm's business model with the required risk profile.
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According to the statement:
"Nexo posed a risk to market confidence, consumer protection and the reputation of the Islands as a financial centre."
The regulator has emphasized the lack of disclosure of information about a possible violation of regulatory requirements in the US and litigation in the UK.
Nexo representatives state the regulator's decision is "procedurally unfair" as it violates constitutional and legal obligations because it failed to provide a detailed statement of the reason for the refusal.