Crypto lender Nexo has pressed charges in the Cayman Islands amid Bulgarian units raiding Nexo’s offices and indicting four individuals over money laundering charges, as reported by Cointelegraph.
According to Cointelegraph, insights from a January 12, 2023, document stated that Nexo filed a lawsuit against the Cayman Islands Monetary Authority (CIMA). It is believed that Nexo was declined registration as a virtual asset service provider (VASP) in the island nation. Reportedly, Nexo asked the court for reversing the verdict due to it being “suitable” to provide crypto services to Cayman Islands’ residents.
On the basis of information by Cointelegraph, Nexo approached CIMA in January, 2021, for sending extra data at the request of the regulator. However, the monetary authority requested an explanation on the application in October, 2022, emphasising “certain legal and regulatory matters as noted in the news media” that weren’t unveiled by Nexo. Reportedly, the application was dropped in December, 2022. “The Authority breached its constitutional and statutory duty to provide comprehensible, satisfactory and sufficiently detailed reasons for its Refusal Decision,” Nexo presumed.
“[Nexo] had diligently cooperated with all US states and federal regulatory inquiries and has been proactive in maintaining dialogue with the respective regulators […] There have been some regulatory ambiguities with respect to the laws and regulations applicable to digital assets in the US such that the fact of the regulatory enforcement itself does not connote any improper behaviour,” Nexo highlighted in its lawsuit.
Moreover, Cointelegraph noted that Nexo aims to stop operations in United States “over the coming months,” due to regulatory issues.
(With insights from Cointelegraph)