In September last year, the crypto-based prediction market Polymarket received the regulatory greenlight to return to the U.S. market after a long exile. Now, another company is returning to the United States after regulatory issues get resolved during the Donald Trump administration. Related: Gold, XRP extend losses on Presidents’ Day Nexo returns to United States after 2 years Nexo, a popular digital asset wealth platform, announced on Feb. 16 that it is returning to the U.S. market. The comeback co ...

Core Insights - Nexo's planned return to the U.S. faces challenges due to regulatory actions in California, a key market for consumer finance [1][5] - The California Department of Financial Protection and Innovation (DFPI) has fined Nexo $500,000 for issuing unlicensed crypto-backed loans to over 5,000 residents [2][3] - The enforcement action raises concerns about Nexo's past compliance failures and their impact on re-entering the U.S. market [1][2] Regulatory Actions - The DFPI found that Nexo issued loans without the necessary state license and failed to assess borrowers' repayment ability [3][4] - Nexo has been ordered to transfer all California customer funds to a licensed U.S. affiliate within 150 days [4] - This penalty is part of a broader trend of regulatory scrutiny that has previously led to Nexo's exit from the U.S. market in 2022 [6][8] Market Implications - California's regulatory stance is significant as it serves as a bellwether for consumer financial services in the U.S. [5] - The recent fine and enforcement actions may hinder Nexo's efforts to rebuild its U.S. presence amidst a changing regulatory environment [2][6]

Core Insights - Nexo has been fined $500,000 by California regulators for issuing unlicensed crypto-backed loans to over 5,456 residents [1][2][8] - The California Department of Financial Protection and Innovation (DFPI) found that Nexo failed to assess borrowers' repayment ability, existing debt levels, or credit history [2] - Nexo has been ordered to transfer all funds belonging to California residents to a licensed U.S. affiliate within 150 days [3][8] Regulatory Actions - The conduct in question occurred between July 2018 and November 2022, during which Nexo expanded its crypto-backed lending business before exiting the U.S. market [4] - In 2023, Nexo faced a $22.5 million settlement over its unregistered Earn Interest Product, and the U.S. Securities and Exchange Commission charged the company, leading to an additional $22.5 million penalty, totaling $45 million in fines for the year [5] - The latest penalty adds to Nexo's growing list of U.S. penalties related to compliance failures in crypto lending [8] Industry Implications - The findings raise broader questions about compliance standards in the crypto lending industry [6] - Despite regulatory challenges, Nexo continues to pursue international expansion and high-profile marketing efforts, including a sponsorship deal with the Australian Open [6] - Nexo has indicated plans to reenter the U.S. market, suggesting a potential comeback [7]