Nexo aims to keep up with regulatory obligations by introducing additional certification standards for its compliance staff.
The cryptocurrency lending platform Nexo will join the Association of Certified Sanctions Specialists (ACSS) to use training materials, relationships, and data as regulatory scrutiny of the larger Web3 ecosystem increases.
In addition to financial institutions, worldwide corporations, law firms, public agencies, and a myriad of other businesses, the association provides training and certification for sanctions professionals in several industries.
The ACSS certification is meant to be global and does not concentrate on particular legal systems or business sectors. Specialists in sanctions who pass the test are thought to be multiskilled in policy, due diligence, screening, compliance, and investigations.
According to a statement, Nexo will demand ACSS certification of all members of its compliance team. Savina Boncheva, head of compliance at Nexo, stated that the company plans to uphold strict compliance requirements despite the ongoing growth of the cryptocurrency sector:
“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.”
After Nexo received a certification from the American Institute of Certified Public Accountants, compliance regulations were tightened up. This happened after the company completed a Service and Organization Controls 2 Type 2 Compliance audit, which tests client data protection in the financial sector.
After paying fines to the Securities and Exchange Commission and the North American Securities Administrators Association totaling $45 million in February 2023, Nexo announced the end of its yield-bearing Earn Interest product in the United States.
The SEC and 17 state securities regulators looked into Nexo’s Earn product. In addition to paying the same amount in fines to resolve complaints from state regulators, the business also paid the SEC $22.5 million in penalties.
The findings were not confirmed or refuted by the company. The business stated in late 2022 that it would cease operations in the US, citing regulatory uncertainty as a hindrance to continuing commercial operations there.
Together with other significant cryptocurrency exchanges and service providers, Nexo has attempted to skip regulatory obligations and registrations in many authorities worldwide.
The SEC has also been focusing on US and Coinbase because of possible securities breaches. Exchanges and platforms for cryptocurrencies continue to apply for licenses or licences in numerous jurisdictions worldwide.
