Crypto lending platform Nexo has sued the Cayman Islands regulator for failing to obtain a license.
The company, whose office in Bulgaria was raided last week, hopes the decision will be reversed.
Nexo Takes The Case To Court
The Cayman Islands Monetary Authority (CIMA) rejected the application on December 20, noting that the company’s business model did not meet the required risk profile.
Nexo has posed a risk to market confidence, consumer protection and the reputation of the Islands as a financial centre.”
According to the regulator, the crypto lender and its shareholders have not disclosed potential regulation enforcement in the US and litigation in British courts to CIMA.
Nexo’s lawyers argued that the decision taken by CIMA was procedural unfair and that the regulator violated its constitutional and statutory duties by failing to notify them in detail of the reasons for the refusal. The company also stated that it addressed the regulator’s concerns at the time of their application.
The company requests that the CIMA decision be reversed and the company determined that it is eligible to be registered.
Nexo stated that a deadlock had been reached in its talks with regulators last month, and decided to move its operations from the USA.
