Nexo will be phasing out its products and services in the United States due to a lack of regulatory clarity

Nexo, a digital asset platform, has announced that it will phase out its products and services in the United States because of a lack of regulatory clarity.

In a statement, the company said it has been engaging in good-faith dialogue with U.S. state and federal regulators for over 18 months. Still, recent events and the subsequent change in regulators' behavior have led Nexo to make this decision.

Nexo has off-boarded clients from the states of New York and Vermont and suspended new registrations for all U.S. clients for its Earn Interest Product.

The company hoped this would meet regulators' expectations and maintain its presence in the U.S. market. However, this was not the case.

As of December 6, 2022, the Earn Interest Product will not be available for existing clients in eight additional U.S. states - Indiana, Kentucky, Maryland, Oklahoma, South Carolina, Wisconsin, California, and Washington.

These immediate changes only affect the usability of the Earn Interest Product for citizens and residents of the eight states above. These clients will continue to enjoy access to all other Nexo products available in these jurisdictions until further notice.

Nexo has said that it will now dedicate its time and effort to developing products and services for jurisdictions that understand the importance of blockchain technology in a rapidly digitizing world.

The company has assured its customers that it has informed its payment specialists and will continue processing withdrawals in real-time so that customers have uninterrupted access to their assets.

The decision to phase out its products and services in the United States is a regrettable but necessary one for Nexo.

Despite its cooperative approach with regulators and its efforts to proactively modify its business in response to their concerns, the company has been unable to find a sustainable path forward in the U.S. market.