Bitcoin News and Finance
Crypto Lender Nexo Terminates Interest Payments on New Deposits From US Clients Skip to main content

Crypto Lender Nexo Terminates Interest Payments on New Deposits From US Clients

Crypto Lender Nexo Terminates Interest Payments on New Deposits From US Clients

Following the U.S. Securities and Exchange Commission (SEC) charging the crypto lending platform Blockfi with failing to register its retail crypto lending product and fining the firm $100 million, the crypto lender Nexo has announced it will no longer allow U.S. citizens to earn interest on new savings wallet top-ups. However, Nexo customers from the U.S. will continue to earn interest on their current savings wallet balances held prior to the announcement.

Nexo ‘Reveals Big Savings News for US Customers’

Last week, the SEC cracked down on the crypto lending platform Blockfi and the company was fined $100 million in penalties. The news followed several regulators from a myriad of states like New Jersey, Kentucky, Texas, Alabama, and Vermont giving warnings to Blockfi about the firm’s interest-bearing accounts.

Some states issued cease and desist orders and the company had to stop offering Blockfi Interest Accounts (BIAs) by a certain date. After Blockfi’s penalties were handed down by the U.S. securities regulator, the crypto lending firm Nexo has announced: “big savings news for U.S. customers.”

According to the Reddit moderator of the subreddit r/nexo, Nexo Josh, U.S.-based Nexo customers will be seeing some new changes in regard to the Nexo savings program that bears interest. Nexo Josh explained that the company has “voluntarily implemented changes” to its earn interest product in the United States in order to “comply with newly-announced guidance.”

Nexo’s representative noted that non-U.S. clients are “not subject to the SEC’s guidance and remain unaffected.” Existing U.S. clients will keep earning on the balances they hold, however, Americans cannot earn interest on newly added balances.

“New top-ups to your [Nexo] savings wallet, as of today, will not earn interest until the restructuring of the earn interest product,” the message from Nexo Josh said. Furthermore, the representative stressed that “any assets withdrawn from your savings wallet, even if returned later, will be treated as new top-ups and will not earn you interest.”

Crypto Lender Nexo Hopes to Launch Earn Interest Product 2.0

As far as new U.S.-based Nexo clients are concerned, the earn interest product will not exist in its current form. Nexo plans to restructure the product and it will be introduced as the earn interest product 2.0 version. “Our team and legal advisers are working around the clock to develop solutions for our U.S. clients that will make the earn interest product 2.0 as widely accessible as possible and compliant with the new regulatory realities,” Nexo Josh concluded.

Meanwhile, Blockfi wasn’t the only crypto firm targeted by securities regulators in the U.S., as Kentucky and Alabama sent warnings to the crypto lending company Celsius over interest-bearing accounts. According to the SEC’s current opinion, the U.S. regulator says crypto savings products that offer interest “are not as safe as bank or credit union deposits.”

What do you think about Nexo voluntarily implementing changes toward its interest-bearing account products in order to comply with U.S. regulators? Let us know what you think about this subject in the comments section below.

Labels:

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r
Post a Comment
Read more
Blogarama - Blog Directory