Nexo, one of Europe’s biggest lending platforms for cryptocurrencies, has announced that it is pulling out of the United States. The company said on Oct 9 that it plans to issue loans only in countries with clear crypto regulations. The announcement came days after Nexo closed its Series B fundraising round, raising $52 million from investors including Huobi Global, OK Blockchain Capital, and Sequoia China.
The platform was launched in June 2018 and allows users to borrow fiat currency in exchange for their cryptocurrency holdings. Nexo is a crypto-backed lending platform that has raised $52 million from investors including Binance Labs and Danhua Capital.
Nexo Criticize USA
Nexo claims to have grown its customer base by 50% over the last few months and currently has more than 80,000 users on its books. The company said it had been approached by several US-based investors over the past year but was holding off on expanding into this market until regulations were clearer.
Nexo, a crypto-backed lending platform, has announced that it will withdraw from the US market. The company says that the US does not provide enough support for crypto-backed lending and that it lacks clear regulations on cryptocurrency use.
The company is a crypto-backed lending platform that allows users to borrow money against their cryptocurrency holdings. The company was founded in 2018 by CTO Antoni Trenchev and CEO Vadim Tedorov with funding from VCs such as Crypto Finance Group (CFG), Galaxy Digital Ventures and BlockTower Capital. Nexo has also partnered with several major exchanges including Binance, BitMEX, OKEx and Huobi Global to enable users access to fiat currencies through its platform without selling their digital assets off first.
While the platform was initially only available to users in Europe, Nexo now also serves customers in the US, Singapore, Australia and Japan.
The company previously announced its plans to expand operations into the United States before 2020 but has now decided to leave due to what they describe as “lack of clear regulations”.
