Kingdom

Celsius

United

Nexo

Nexo – a popular cryptocurrency lending platform – is dissolving two business units based in the United Kingdom while it deals with regulatory issues in other parts of Europe and North America. 
The latest steps are part of a “restructuring” effort that will still involve Nexo continuing operations within the country. 
<ul>
<li style="font-weight: 400">As reported by <a href="https://www.bnnbloomberg.ca/crypto-lender-nexo-takes-steps-to-dissolve-uk-units-1.1918939" data-wpel-link="external" target="_blank">BNN Bloomberg</a>, filings from this month show that the lender has applied to remove both Nexo Financial Services Ltd. and Nexo Clearing and Custody Ltd from the UK companies register.</li>
<li style="font-weight: 400">In messages to Bloomberg, Nexo co-founder Antoni Trenchev explained that his company was  “doing some restructuring” and “rethinking the way we go about servicing clients.” </li>
<li style="font-weight: 400">Besides crypto trading and custody, Nexo offers a number of crypto-based financial products to its clients, including debit card services, borrowing, and savings accounts. These savings accounts can offer “up to 15% APR on your crypto,” according to its website, with yields sometimes rising as high as 7% for Bitcoin, and 12% for USDC. </li>
<li style="font-weight: 400">Regulators in the United States have shown strong skepticism of crypto-based interest-bearing accounts, <a href="https://cryptopotato.com/sec-chairman-warns-of-crypto-lending-platforms-with-unrealistic-returns/" data-wpel-link="internal">criticizing</a> them for their unusually high savings rates compared to traditional savings accounts. Unlike chartered banks, crypto financial platforms are not covered by federal deposit insurance. </li>
<li style="font-weight: 400">Scrutiny increased in mid-2022 after billions of dollars were lost within multiple now-bankrupt crypto lending platforms including Celsius and Voyager, and later BlockFi. </li>
<li style="font-weight: 400">Nexo <a href="https://cryptopotato.com/nexos-co-founders-dismiss-insolvency-rumors-reveal-expansion-plans/" data-wpel-link="internal">emphasized</a> that it was not in the same perilous financial condition as such firms, but nevertheless faced ongoing waves of scrutiny and <a href="https://cryptopotato.com/nexo-agrees-to-pay-45-million-in-fines-to-us-authorities/" data-wpel-link="internal">charges</a> from the Securities and Exchange Commission over the coming months. In December, Nexo <a href="https://cryptopotato.com/nexo-is-leaving-the-united-states-due-to-regulatory-difficulties/" data-wpel-link="internal">announced</a> that it was leaving the United States due to regulatory difficulties. </li>
<li style="font-weight: 400">Nexo’s Earn product is also inaccessible in Canada, where regulators have entirely <a href="https://cryptopotato.com/canadian-securities-regulators-ban-crypto-margin-trading/" data-wpel-link="internal">banned</a> crypto margin trading. </li>
<li style="font-weight: 400">The firm’s troubles extend to Bulgaria as well, where its offices were <a href="https://cryptopotato.com/nexo-bulgarian-offices-reportedly-raided-by-authorities/" data-wpel-link="internal">raided</a> in January on accusations of money laundering, tax fraud, and computer fraud, while conducting unlicensed banking services. </li>
<li style="font-weight: 400">Trenchev described the accusations as “ludicrous,” and his company <a href="https://cryptopotato.com/nexo-mulls-suing-bulgaria-for-1-billion-says-co-founder-antoni-trenchev/" data-wpel-link="internal">sued</a> Bulgaria for $1 million in response. 
</li>
</ul>
The post <a href="https://cryptopotato.com/nexo-to-dissolve-uk-based-units-in-restructuring-plans/" rel="nofollow">Nexo to Dissolve UK-Based Units in Restructuring Plans</a> appeared first on <a href="https://cryptopotato.com/" rel="nofollow">CryptoPotato</a>.

Nexo to Dissolve UK-Based Units in Restructuring Plans

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