Nexo joins sanctions association amid growing regulatory scrutiny

Nexo joins sanctions association amid growing regulatory scrutiny

The Evolving Landscape of Blockchain Compliance: Insights from Nexo

The blockchain industry has been under increasing regulatory scrutiny, prompting companies to seek new measures that enhance their compliance protocols. Nexo, a prominent cryptocurrency lending platform, is taking a proactive approach by joining the Association of Certified Sanctions Specialists (ACSS). By leveraging training resources, connections, and data from the association, Nexo aims to strengthen its compliance capabilities and maintain stringent standards within the evolving crypto landscape.

Strengthening Compliance Through Certification

The ACSS offers comprehensive training and certification for sanctions professionals across various industries, including financial institutions, international corporations, law firms, and public institutions. Nexo recognizes the value of being part of this association, as it allows their compliance staff to acquire the ACSS certification, bolstering their credentials and demonstrating their expertise in policy, due diligence, screening, compliance, and investigation.

The ACSS certification is universal, transcending specific jurisdictions and industries. This universality ensures that sanctions specialists who complete the examination possess the necessary skills to navigate complex compliance challenges irrespective of their geographical or regulatory context.

A Commitment to Credibility

Nexo’s decision to require ACSS certification for its compliance staff underscores its commitment to maintaining credibility within the crypto industry. Savina Boncheva, Nexo’s compliance head, emphasizes the importance of partnering with ACSS as a means of strengthening their sanctions compliance and facilitating the growth of their compliance team. This collaboration ultimately elevates Nexo’s compliance standards to a level recognized and endorsed by a renowned industry body.

A Journey of Compliance

Nexo’s pursuit of heightened compliance measures is not a recent development. The company had previously obtained the American Institute of Certified Public Accountants (AICPA) certificate, a testament to their commitment to client data protection. This achievement followed the successful completion of a Service and Organization Controls (SOC) 2 Type 2 Compliance audit, which is a widely recognized industry benchmark.

However, Nexo has not been immune to regulatory challenges. In February 2023, the company faced a $45 million penalty from the Securities and Exchange Commission (SEC) and the North American Securities Administrators Association for its yield-bearing Earn Interest product. This incident prompted Nexo to terminate the product in the United States. The company paid $22.5 million in penalties to both the SEC and state regulators while not admitting or denying the findings.

The regulatory landscape in the United States presented significant hurdles for Nexo, leading the company to wind down its operations in the country. Such challenges have been observed across the industry, with major cryptocurrency exchanges and service providers, such as Binance.US and Coinbase, facing similar investigations and allegations of securities violations by the SEC.

A Global Quest for Compliance

Nexo’s approach to compliance aligns with other cryptocurrency exchanges and platforms around the world. As the industry matures, businesses are acknowledging the importance of adhering to regulatory requirements. Many companies are actively seeking licenses and permits to operate within various jurisdictions.

In their quest for compliance, cryptocurrency platforms are investing in resources, partnerships, and certifications. By doing so, they not only enhance their credibility but also demonstrate their commitment to operating in a responsible and compliant manner.


The blockchain industry continues to navigate a rapidly evolving regulatory landscape, necessitating the implementation of robust compliance measures. Nexo’s decision to join the ACSS and require ACSS certification for its compliance staff exemplifies their dedication to achieving and maintaining the highest standards of compliance in the crypto industry.

As other major industry players face regulatory challenges, this commitment to compliance becomes even more crucial. By fortifying compliance protocols and partnering with recognized industry bodies, companies like Nexo can not only navigate regulatory complexities but also foster growth and contribute to the maturity of the blockchain industry as a whole.