One of the market’s major crypto lending platforms plans to halt its interest-earning product program from April as a result of its agreement with the SEC. The related altcoin project experienced moderate sales after the news.
SEC halts interest program of this lending platform
Nexo, a leading crypto lending platform, has announced that it will discontinue its Interest Earning Product for all US customers from April 1, 2023. The regulatory decision comes after the platform reached an agreement with the SEC. The settlement, concluded on the basis of acceptance and rejection, closed all multi-year investigations into Nexo’s operations.
https://twitter.com/Nexo/status/16245511354009264128
Nexo (NEXO) price drops
NEXO price has been moving downward since the beginning of the year. It dropped around 2% after the SEC news of the day. The altcoin is trading at $0.7172 at the time of writing.
What’s changing for Nexo?
As part of the agreement, Nexo will cease offering the Interest Earning Product to all US citizens and residents in the US region effective April 1, 2023. However, Nexo encourages its US customers to start scheduling withdrawals as soon as possible.
Nexo’s other services, such as processing transactions, will continue to operate normally, ensuring customers are supported during this transition period. The decision to cease offering the Platform’s Interest Earning Product to US customers only applies to US-based customers, and non-US customers will continue to enjoy all of Nexo’s services.
If customers believe their account has been incorrectly labeled as US-based, they must update their verification details by providing a document from the past three years, such as a bank statement, electricity bill, tax return, lease agreement, or insurance statement. These documents must show the customer’s name and address of residence. The decision from the SEC comes after rumors recently that it will ban market-hugging staking.
Kraken has stopped staking services
In a key development during the week, San Francisco-based cryptocurrency exchange Kraken settled with the SEC on charges of not registering its staking program. According to an announcement by the SEC on Feb. 9, the crypto firm has agreed to stop offering staking services to US clients and pay $30 million in liquidation, bias interest, and civil penalties. The SEC alleges that the staking program offered by Kraken qualifies as securities and the firm fails to provide users with sufficient information about its financial position, thus putting their investments at risk.
Today we charged Kraken with failing to register the offer and sale of their crypto asset staking-as-a-service program, whereby investors transfer crypto assets to Kraken for staking in exchange for advertised annual investment returns of as much as 21 percent.
— U.S. Securities and Exchange Commission (@SECGov) February 9, 2023
cryptocoin.com We have included the details of the Kraken investigation in this article. According to experts, other crypto companies may also suffer from this decision of the SEC.
