Nexo is suing Cayman Islands’ financial regulator for denying its registration as a virtual asset service provider in the territory. The Cayman Islands Monetary Authority declined Nexo’s VASP application dated December 20.

Among the reasons cited by the authority is a need for more documentation on customer and enterprise risk assessment. CIMA is also faulting the application, among other things, for not having enough anti-money laundering provisions.

Countering the claims, Nexo noted in the lawsuit that the reasons pointed out by CIMA are not ‘‘satisfactory nor sufficiently detailed.’’ For that reason, it is seeking that the directive is reversed and awarded the operating license.