Nexo Sues Cayman Islands Monetary Authority over Rejected Virtual Asset License

Nexo sued the Cayman Islands Monetary Authority (CIMA) after its application for a virtual asset license was denied.

Nexo lawyers argue the CIMA's decision was procedurally unfair and that the regulator also breached its constitutional and statutory duties by not informing Nexo the detailed reason for the rejection. Nexo not only wants the CIMA decision reversed, but it also wants the court to rule that CIMA to register it.

Previously, the CIMA rejected Nexo's application on Dec. 20, saying the firm's business model did not meet the required risk profile. "Nexo posed a risk to market confidence, consumer protection and the reputation of the Islands as a financial centre. And Nexo directors and shareholders had failed to disclosure to the CIMA potential regulatory enforcement matter in the U.S. and proceedings in English courts."