The California Department of Financial Protection and Innovation (DFPI) announced that the crypto lending platform Nexo Capital has agreed to pay a $5 million fine for issuing approximately 5,456 loans to California residents without a valid license and without adequately assessing borrowers' repayment ability (including income, debt, and credit status). The regulator pointed out that Nexo lacked comprehensive lending and risk management policies from July 2018 to November 2022, and that the related crypto collateralized loans carried a high risk of default. Previously, Nexo had exited interest-bearing products in the United States in early 2023 and reached a $45 million settlement with U.S. regulators. (Cointelegraph)
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The California Department of Financial Protection and Innovation (DFPI) announced that the crypto lending platform Nexo Capital has agreed to pay a $5 million fine for issuing approximately 5,456 loans to California residents without a valid license and without adequately assessing borrowers' repayment ability (including income, debt, and credit status). The regulator pointed out that Nexo lacked comprehensive lending and risk management policies from July 2018 to November 2022, and that the related crypto collateralized loans carried a high risk of default. Previously, Nexo had exited interest-bearing products in the United States in early 2023 and reached a $45 million settlement with U.S. regulators. (Cointelegraph)