Nexo Halts Interest on New Deposits

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Key Takeaways:

  • Nexo has announced a set of policy changes for US customers, as the Securities and Exchange Commission investigates crypto lending products and services.
  • The policy changes affect both existing accounts and new accounts, with the firm saying it “voluntarily implemented changes to its Earn Interest Product in the U.S. to comply with newly-announced guidance.”

Nexo has announced a set of policy changes for U.S. customers as the Securities and Exchange Commission investigates crypto lending products and services. According to an email sent to customers and a statement on Nexo’s official subreddit, the policy changes affect both existing accounts and new accounts, with the firm saying it “voluntarily implemented changes to its Earn Interest Product in the U.S. to comply with newly-announced guidance.”

The firm explained that “Top-ups to your Nexo Wallets made after today will not earn interest until the restructuring of the Earn Interest Product and the registration process with the relevant regulatory bodies are complete, as per the recently received guidance. Once complete, all new accounts will be transferred to the Earn Interest Product 2.0, and the new top-ups will earn interest. Please note that if you withdraw any of the assets in your current balance, you won’t be able to earn interest on them even upon their subsequent return.”

According to the statement, “Nexo’s Earn Interest Product in its current form will not be available for new clients until the restructuring of the Earn Interest Product and the registration process with the relevant regulatory bodies is completed, as per the recently received guidance”. The statement further stated that “The current changes only affect Nexo’s Earn Interest Product in the U.S. and have no impact on any other Nexo products. Non-U.S. clients are not subject to the SEC’s guidance and remain unaffected by any of these changes.”

Nexo advertises its interest-bearing product on its website as offering up to 20% annual interest to investors. Non-U.S. clients, according to the firm, will be unaffected by the recent changes.

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Chaahat Girdhar

I'm Chaahat Girdhar, a journalist by profession who's turning her dreams into vision and vision into reality. I'm curious and have an appetite for gaining new knowledge. So I'm looking forward to learning things in the better way possible.