Crypto-based Nexo Files Complaint Against Cayman Islands Monetary Authority

[ad_1]

Crypto lender Nexo filed charges in the Cayman Islands amid Bulgarian units that raided Nexos offices and charged four people with money laundering, as Cointelegraph reported.

According to Cointelegraph, information from a January 12, 2023 document indicates that Nexo has filed a lawsuit against the Cayman Islands Monetary Authority (CIMA). Nexo is believed to have been denied registration as a Virtual Asset Service Provider (VASP) in the island nation. Apparently, Nexo asked the court to overturn the verdict as it was appropriate to provide crypto services to residents of the Cayman Islands.

Based on information from Cointelegraph, Nexo approached CIMA in January 2021 to send additional data at the request of the regulator. However, the monetary authority requested an explanation on the application in October 2022, emphasizing certain legal and regulatory issues, as reported in news media which were not disclosed by Nexo. Apparently, the request was dropped in December 2022. The Authority violated its constitutional and legal obligation to provide understandable, satisfactory and sufficiently detailed reasons for its denial decision, Nexo alleged.

[Nexo] cooperated diligently with all U.S. state and federal regulatory investigations and was proactive in maintaining dialogue with respective regulators […] There have been certain regulatory ambiguities regarding the laws and regulations applicable to digital assets in the United States, so the fact of the enforcement of the regulations itself does not imply improper behavior, Nexo pointed out in its lawsuit.

Additionally, Cointelegraph noted that Nexo intends to halt its operations in the United States in the coming months, due to regulatory issues.

(With information from Cointelegraph)

Follow us on Twitter, Facebook, LinkedIn

[ad_2]