Bulgarian decentralized lending platform Nexo has introduced a cryptocurrency Mastercard debit and credit card available to citizens of the European Economic Area (EEA). This card, known as the Nexo Card, enables users to utilize euro, dollar, and pound stablecoins for debit trans actions at over 100 million merchant terminals across the globe. Nexo Cardholders can also earn up to 9% annual interest on their stored balance.
The Nexo Card offers a unique feature for credit transactions. Users can use major cryptocurrencies such as Bitcoin as collateral and receive benefits such as up to 2% cashback and an Annual Percentage Rate (APR) of 16% on credit lines used. When a Nexo Card is used at a terminal, both debit and credit card transactions instantly convert the user's cryptocurrency into fiat currency. Notably, Nexo asserts that custody assets are backed by Ledger and Bakkt.
The company has emphasized user-friendly terms for the new Nexo Card. It is devoid of monthly fees or inactivity charges and possesses a monthly foreign exchange limit of up to €20,000 ($21,700) and a monthly ATM withdrawal limit of €10,000 ($10,800) . Nexo will issue both virtual and physical cards after customers complete the Know Your Customer (KYC) verification process. Furthermore, these cards can be linked to Apple Pay and Google Pay. However, it is crucial to note that the card is exclusively available to … EEA citizens in the 30 participating countries.
Earlier this year, Bulgarian authorities conducted a raid on Nexo's corporate offices in Sofia over alleged violations related to sanctions and anti-money laundering measures targeting Russia. In response, Nexo expressed intentions to pursue a lawsuit a gainst the Bulgarian government for damages incurred due to the incident. Consequently, Nexo refrains from offering its services to Bulgarian residents.
Nexo emphasized its stringent adherence to the highest standards of Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols. The platform collaborates with prominent firms like Chainalysis, renowned for its adherence to regulations, to ensure compliance. Nexo main contains a team of experts certified in the United States for anti-money laundering measures, enabling effective tracing of cryptocurrency asset origins entering the platform and the monitoring of funds withdrawn.
In response to the Ukraine conflict and the subsequent sanctions imposed on Russia, Nexo swiftly enacted strict policies targeting sanctioned regions and individuals. The platform was among the early responders in terms of mobilizing support and raising funds to ass ist victims affected by the conflict's aftermath.
The company also noted that the allegations brought against it by the Prosecutor's Office have yet to be substantiated, and various Bulgarian institutions have cleared Nexo of any wrongdoing in connection with the incident.
