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Illustrated by Ray Cook/Axios
Cryptocurrency lender Nexo pays $45 million fine to U.S. Securities and Exchange Commission (SEC) for offering unregistered securities in the U.S. in its Earn Interest Product agreed.
Important reasons: This is the latest in a series of actions by government agencies to indicate that programs that allow users to deposit assets in order to earn interest in exchange for letting others borrow them must register as security. .
What they say: “We are not concerned with the labels on products, but the economic reality of them. And part of that reality is that crypto assets are not exempt from federal securities laws.” Gurbir S. Grewal, Director of the SEC’s Enforcement Division, said in a press release.
- Nexo will not confirm or deny the consequences of consent orders.
- Half of the $45 million fine will go to the SEC and the other half to other state authorities.
Flashback: In December, Nexo announced it was closing its US operations. The consent order includes a cease and desist, so there are no indications the company will resume operations here anytime soon.
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