Nexo, a well-known cryptocurrency lender, has opted to close two of its UK-based offices due to legal challenges in parts of Europe.
Recent documents showed that the London-based cryptocurrency lending firm Nexo has finished the legal requirements to have its subsidiaries Nexo Financial Services Ltd. and Nexo Clearing and Custody Ltd. removed from the UK’s register of companies. In addition, as reported by a recent Bloomberg report, Nexo co-founder Antoni Trenchev clarified that while the company was going through a restructuring process, it was not currently planning to leave the country.
Nexo Dissolves UK Entities
With more than 5 million users, Nexo, which launched in 2018, offers services like crypto lending, custody, loans, yield-generating investments, and debit cards. The management of assets worth about $2 billion on its platform is the firm’s responsibility, according to an attestation provided by the accounting firm Moore Johannesburg on Thursday.
Prosecuting solicitors in Bulgaria filed accusations against four people in January of this year as a result of their investigation into Nexo. The Bulgarian nationals are charged with creating an organized crime group that engaged in money laundering, unlawful banking, tax and internet fraud, and other illegal conduct. But after giving the accusations some thought, Trenchev—a well-known former Bulgarian lawmaker—called them “ludicrous.”
Increasing Regulatory Obstacles
Nexo made the decision to discontinue offering its products and services in the US market in December of last year. However, it later came to an agreement to settle charges of violating national securities laws by paying the US Securities and Exchange Commission (SEC) and state authorities a total of $45 million in fines.
Currently, the company employs roughly 600 employees who are spread out across three different countries: Bulgaria, the United Arab Emirates, and London. The price of Nexo’s native cryptocurrency has fallen by 0.78% in the last hour as a result of this cryptocurrency news, and it is now trading at $0.65.