Nexo joins sanctions association as regulatory scrutiny increases

As regulatory scrutiny continues to circle the wider Web3 ecosystem, cryptocurrency lending platform Nexo will look to leverage training resources, connections and data by joining the Association of Certified Sanctions Specialists (ACSS).

The association offers training and certification for sanctions professionals across a variety of industries including financial institutions, international corporations, law firms, public institutions and a host of other businesses.

The ACSS certification is intended to be universal and does not focus on specific jurisdictions or industries. Sanctions specialists that complete the examination are deemed to be multiskilled across policy, due diligence, screening, compliance and investigations.

An announcement shared with Cointelegraph outlined that Nexo will require its compliance staff to be ACSS certified. Nexo’s compliance head, Savina Boncheva, said that the firm intends to maintain stringent compliance standards as the crypto industry continues to expand:

“Teaming up with ACSS allows us to elevate our sanctions compliance to a degree endorsed by a renowned industry body, whilst fostering opportunities for our compliance team’s growth.”

The increased compliance measures come after Nexo acquired an American Institute of Certified Public Accountants certificate. This came after the firm completed a Service and Organization Controls 2 Type 2 Compliance audit, which is a financial industry measure of client data protection.

In February 2023, Nexo announced the termination of its yield-bearing Earn Interest product in the United States after paying $45 million in penalties to the Securities and Exchange Commission and the North American Securities Administrators Association.

Related: Nexo agrees to $45M settlement with SEC and states over Earn product

Nexo was investigated by the SEC and 17 state securities regulators over its Earn product. The company paid $22.5 million in penalties to the SEC as well as the same sum in fines to settle state regulator charges. The company did not admit or deny the findings. 

In late 2022, the company announced that it would wind down its operations in the U.S., citing regulatory uncertainty as a barrier to ongoing business operations in the country.

Nexo’s effort to forego compliance requirements and registrations in various jurisdictions around the world has come in tandem with other major cryptocurrency exchanges and service providers.

The likes of Binance.US and Coinbase have also been under the spotlight of the SEC over alleged securities violations. Meanwhile, cryptocurrency exchanges and platforms continue to apply for licenses or permits in various jurisdictions around the world. 

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