Cryptocurrency lending platform Nexo will stop offering its Earn Interest Product (EIP) to US investors as of April 1 this year.
As reported by the company, until the product is shut down, users will continue to receive interest on their balance. It should be noted that the restrictions do not apply to users outside the US and non-US residents.
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However, other Nexo services will not be affected by the decision. The company has urged account holders erroneously labeled as registered in the United States to update their details and provide a bank statement, utility bill, latest tax return or current lease.
Platform representatives have clarified:
"The above course of action reflects our belief that the development of clear regulatory frameworks is the best way to protect the crypto industry and usher it into the mainstream safely and compliantly."
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Nexo reached a settlement with regulators in early 2023 and agreed to pay $45 million in fines.