Cryptocurrency lending platform Nexo is taking steps to enhance its compliance measures by joining the Association of Certified Sanctions Specialists (ACSS). As regulatory scrutiny in the Web3 ecosystem continues, Nexo aims to leverage the resources, connections, and data provided by ACSS to ensure strict compliance standards. The association offers training and certification to sanctions professionals across various industries, including financial institutions, international corporations, law firms, public agencies, and other businesses.
ACSS certification is designed to be generic and not specific to a particular jurisdiction or industry. It covers a wide range of skills in policy, due diligence, screening, compliance, and investigations. Nexo plans to have its compliance officers become ACSS certified, reinforcing their expertise and commitment to adhering to sanctions regulations.
Earlier, Nexo earned its AICPA credential and implemented additional compliance measures. It underwent a Service and Organizational Controls 2 Type 2 compliance audit, a measure to protect customer data in the financial industry.
In February 2023, Nexo faced regulatory challenges, paying a $45 million fine to the SEC and the North American Securities Administrators Association. This was related to the termination of its revenue-earning interest products in the United States. The company's Earn product was under investigation by the SEC and 17 state securities regulators. Nexo settled the charges by paying a $22.5 million fine to the SEC and an equal amount to the state regulators without admitting or denying the findings.
Due to regulatory uncertainty in the US, Nexo decided to wind down its operations in late 2022. This move aligns with the efforts of other major cryptocurrency exchanges and service providers facing compliance requirements and registrations in various jurisdictions. Companies like Binance.US and Coinbase have It also faced scrutiny from the SEC for alleged securities violations. Nonetheless, cryptocurrency platforms continue to seek licenses or permits in different parts of the world as they navigate the evolving regulatory landscape.
