According to the crypto lending site Nexo, it will no longer accept new registrations and will eventually cease operations for existing clients. According to a blog post published on December 5, the crypto borrowing and lending platform Nexo intends to progressively stop operations in the United States “over the following months.” Nexo has indicated that leaving the United States is “regrettable yet essential.”

Today we are announcing the regrettable but necessary decision that Nexo will be phasing out its products and services in the United States due to a lack of regulatory clarity.

— Nexo (@Nexo) December 5, 2022

Nexo stated in the article that it has been in discussions with US regulators for 18 months in order to identify how to comply with US financial rules. However, no deal has been reached between the corporation and US regulators.

“Our decision follows more than 18 months of good-faith conversation with US state and federal agencies that have come to a halt,” the firm said “According to the corporation. “Unfortunately, despite statements to the contrary, the United States has refused to create a route ahead for allowing blockchain enterprises, and we cannot give our consumers trust that regulators are looking out for their best interests.”

Nexo said that it has deactivated clients from New York and Vermont and has halted new registrations for the platform’s Earn Interest offering in the United States. Furthermore, current clients in eight other states will lose access to the Earn Interest program after December 6, 2022.

Existing clients in other states will continue to have access to the product for the time being.

Following the bankruptcy of crypto exchange FTX, US regulators have been under scrutiny in recent weeks. Some legislators in the United States have advocated that authorities should be granted greater authority to supervise cryptocurrency exchanges. On the other side, several industry leaders have claimed that overregulation is driving US investors to riskier overseas exchanges.