After BlockFi's penalty payment of $100 million to the US Securities and Exchange, crypto lending platform Nexo appears to be making some changes. The changes are for the US customers over a similar product as BlockFi, which enables earning high-interest rates on cryptocurrency deposits. On Friday, a Nexo moderator posted on their official subreddit that these changes are a voluntary effort to comply with federal and state securities regulators. The post also stated that the company wants to settle the allegations that it illegally offered a product that pays high-interest rates for lending out cryptocurrencies.
The firm clarified, "Top-ups to your Nexo Wallets made after today will not earn interest until the restructuring of the Earn Interest Product and the registration process with the relevant regulatory bodies are complete, as per the recently received guidance. Once complete, all new accounts will be transferred to the Earn Interest Product 2.0 and the new top-ups will earn interest. Please note that if you withdraw any of the assets in your current balance, you won't be able to earn interest on them even upon their subsequent return."
According to the subreddit, Nexo intends to follow BlockFi on its path to register its offerings with the regulators. As a result, the current customers on the Nexo platform won't earn interest on new crypto deposits, but they can continue earning on their existing balance. In addition, new clients on the platform will get limited access to the products originally offered. The firm also stated its intention to formulate new offerings compliant with the security laws.
The Nexo website offers up to 20% annual interest for investors, and the recent updates will not affect non-US clients. If you are looking to invest in Nexo, it is worth checking out Nexo Review. At Bitcompare, we provide information about all major crypto lending platforms to help you get the most out of your investments. Apart from Nexo, BlockFi and Celsius Network are some of the safest crypto lending platforms, and it is recommended to compare them before investing. (Nexo vs BlockFi and Nexo vs Celsius Network)