The cryptocurrency platform “Nexo” is heading to change the terms and conditions for US customers, providing them with a product that enables them to obtain high interest rates on their cryptocurrency deposits. The decision follows a recent settlement between the US Securities and Exchange Commission and BlockFi Inc over a similar product.
In a statement posted on the subreddit platform on Friday by a broker who is not an employee of the company, but says he works with them “closely,” Nexo says the changes represent an attempt to voluntarily comply with what is stated in the “Block” agreement. Fay, which paid $100 million to the US Securities and Exchange Commission and other regulators to settle charges that the company illegally offered a product that would pay customers high interest for lending their digital tokens.
BlockFi plans to register its bids with the regulator, the same path that Nexo said, according to a statement posted on the Subreddit platform, that it intends to follow.
Existing Nexo clients in the US will not be able to earn interest on new deposits, although they can continue to earn interest on their existing balances of crypto assets. While new customers will not be able to access that product at all, according to the statement.
The company said it intends to eventually make a new offering available in compliance with the Securities Regulation Act. And it indicated in the statement that the recently announced changes will be effective “with the completion of the restructuring of the profitable interest product, and registration with the relevant regulatory authorities.” Nexo did not immediately respond to a request for comment.
On its website, Nexo promotes its product, which gives investors an annual interest of up to 20%. The company said that non-US customers will not be covered by the latest updates.
Bloomberg reported in January that the US Securities and Exchange Commission was examining Celsius Network, Gemini Trust Co. and Voyager Digital Ltd on issues similar to these. raised in the “Block-Fi” settlement.
