Nexo Launches Crypto-Powered Mastercard for EEA Citizens, Faces Legal Challenges in Bulgaria
Summary:
Bulgarian fintech Nexo introduces a crypto-powered Mastercard for EEA citizens. The Nexo Card allows users to spend stablecoins and offers rewards and interest rates on stored balances and credit lines. The card converts crypto to fiat currency and comes with no monthly fees. However, Nexo is currently facing legal issues in Bulgaria.
Bulgarian fintech company Nexo has introduced a new debit and credit Mastercard, which is powered by cryptocurrency, exclusively for citizens within the European Economic Area (EEA). The Nexo Card permits users to utilize euro, U.S. dollar, and British pound stablecoins for debit transactions at over 100 million merchant terminals worldwide. Additionally, users can earn up to 9% in annual interest on stored balances. For credit transactions, major cryptocurrencies such as Bitcoin are utilized as collateral. Users can enjoy up to 2% cash back and interest rates of 16% per annum on used credit lines. Both debit and credit transactions are instantly converted from crypto to fiat currency when used at terminals. Nexo claims that customers' assets are insured by Ledger and Bakkt. The Nexo Card does not include monthly or inactivity fees and allows up to 20,000 euros ($21,700) per month for foreign exchange transactions. Users can withdraw up to 10,000 euros ($10,800) in cash from ATMs monthly. Upon successful Know Your Customer verification, individuals will receive both a virtual and physical card, both of which are compatible with Apple Pay and Google Pay. However, the Nexo Card is exclusively available to individuals residing within the 30-country EEA region. Earlier this year, Nexo's offices in Sofia, Bulgaria were subjected to a police raid due to alleged violations of sanctions and Anti-Money Laundering laws pertaining to Russia. The company has expressed intentions to sue the Bulgarian government for damages related to the incident. It should be noted that Nexo does not offer services to residents of Bulgaria.
Published At
8/31/2023 2:51:48 PM
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