1 year ago
The crypto lender claimed that the Cayman Islands Monetary Authority had placed “too overmuch weight” connected regulators' enforcement actions successful its determination to contradict registration.
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The aforesaid week that Bulgarian authorities were raiding Nexo’s offices and indicting 4 individuals for charges related to wealth laundering, the crypto lender filed suit successful the Cayman Islands.
In a papers dated Jan. 12, Nexo filed a suit against the Cayman Islands Monetary Authority, oregon CIMA, for denying its registration arsenic a virtual plus work supplier (VASP) successful the land nation. The crypto lender asked the tribunal to overturn the fiscal regulator’s determination arsenic it was “suitable” to supply crypto services to Cayman Islands residents.
According to tribunal documents, Nexo applied to CIMA successful January 2021, providing further accusation astatine the petition of the regulator. However, the monetary authorization asked for clarification connected the exertion successful October 2022, citing “certain ineligible and regulatory matters arsenic noted successful the quality media” which Nexo had not disclosed, and aboriginal rejected the exertion successful December 2022.
“The Authority breached its law and statutory work to supply comprehensible, satisfactory and sufficiently elaborate reasons for its Refusal Decision,” alleged Nexo.
Related: Nexo probe is not political, Bulgarian prosecutors say
Nexo claimed that CIMA had placed “too overmuch weight” connected regulators posing enforcement actions connected the crypto lender, citing incidents successful United Kingdom courts. State-level regulators successful the United States besides filed cease and desist orders against Nexo successful 2022:
“[Nexo] had diligently cooperated with each US states and national regulatory inquiries and has been proactive successful maintaining dialog with the respective regulators [...] There person been immoderate regulatory ambiguities with respect to the laws and regulations applicable to integer assets successful the US specified that the information of the regulatory enforcement itself does not connote immoderate improper behaviour.”The lending steadfast announced successful December that it planned to gradually cease operations successful the United States “over the coming months,” citing a deficiency of regulatory clarity.
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