The identical week that Bulgarian authorities had been raiding Nexo’s workplaces and indicting 4 people for costs associated to cash laundering, the crypto lender filed swimsuit within the Cayman Islands.
In a doc dated Jan. 12, Nexo filed a lawsuit in opposition to the Cayman Islands Financial Authority, or CIMA, for denying its registration as a digital asset service supplier (VASP) within the island nation. The crypto lender requested the courtroom to overturn the monetary regulator’s choice because it was “appropriate” to offer crypto providers to Cayman Islands residents.
In accordance with courtroom paperwork, Nexo utilized to CIMA in January 2021, offering further data on the request of the regulator. Nevertheless, the financial authority requested for clarification on the applying in October 2022, citing “sure authorized and regulatory issues as famous within the information media” which Nexo had not disclosed, and later rejected the applying in December 2022.
“The Authority breached its constitutional and statutory obligation to offer understandable, passable and sufficiently detailed causes for its Refusal Choice,” alleged Nexo.
Associated: Nexo investigation just isn’t political, Bulgarian prosecutors say
Nexo claimed that CIMA had positioned “an excessive amount of weight” on regulators posing enforcement actions on the crypto lender, citing incidents in United Kingdom courts. State-level regulators in the US additionally filed stop and desist orders in opposition to Nexo in 2022:
“[Nexo] had diligently cooperated with all US states and federal regulatory inquiries and has been proactive in sustaining dialogue with the respective regulators […] There have been some regulatory ambiguities with respect to the legal guidelines and rules relevant to digital belongings within the US such that the actual fact of the regulatory enforcement itself doesn’t connote any improper behaviour.”
The lending agency introduced in December that it deliberate to steadily stop operations in the US “over the approaching months,” citing a scarcity of regulatory readability.