Crypto lending platform Nexo has sued the Cayman Islands regulator for failing to obtain a license.
The company, whose office in Bulgaria was raided last week, hopes the decision will be reversed.
Nexo Takes Matter To Court
The Cayman Islands Monetary Authority (CIMA) rejected the application on December 20, noting that the company’s business model did not meet the required risk profile.
Nexo posed a risk to market confidence, consumer protection and the Islands reputation as a financial centre.”
The crypto lender and its shareholders have not disclosed to CIMA the potential issue of regulation enforcement in the US and litigation in British courts, the regulator stated.
Nexo’s lawyers argued that the decision taken by CIMA was procedural unfair and that the regulator violated its constitutional and statutory duties by failing to notify them in detail of the reasons for the refusal. The company also stated that it addressed the regulator’s concerns at the time of their application.
The company requests that the CIMA decision be reversed and the company determined that it is eligible to be registered.
Nexo, last month, stated that a stalemate was reached in its talks with regulators, and decided to move its operations from the USA.
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