Crypto Platform Resumes UK Registrations After 10-Month FCA Compliance Pause

September 03, 2024 11:40 PM AEST | By Team Kalkine Media

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Crypto Platform Resumes UK Registrations After 10-Month FCA Compliance Pause — Image source: Shutterstock

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Nexo, a prominent crypto lending platform, is resuming new user registrations in the United Kingdom after a 10-month suspension of its onboarding process. This hiatus was undertaken to align the platform's procedures with the regulatory standards set by the UK’s Financial Conduct Authority (FCA), which focus on enhancing investor protection.

The decision to pause new user registrations, which began in December 2023, was part of Nexo’s broader strategy to update its compliance practices in response to FCA guidelines. During this period, Nexo also phased out several UK services, including cashback payouts for the Nexo Exchange and Nexo Card, as well as referral and affiliate programs starting October 8, 2023.

The regulatory changes implemented by the FCA aimed to bolster risk awareness and ensure that financial services offered to consumers adhere to high standards of investor protection. In line with these objectives, Nexo's revised onboarding process now includes a comprehensive, step-by-step checklist and access to extensive educational resources. This new approach is designed to enhance users' understanding of the risks associated with crypto transactions and improve the overall user experience in the cryptocurrency space.

Nexo's efforts to realign with FCA guidelines come amid broader regulatory challenges faced by other companies in the crypto sector. Notably, {PayPal} (PYUSD) and Bybit also adjusted their crypto-related services for UK users in response to FCA regulations. PayPal suspended crypto sales for UK customers for a three-month period, while Bybit halted its crypto services in the UK following an FCA warning.

Nexo's updated onboarding process is expected to support UK users in navigating the complexities of the cryptocurrency landscape more effectively. With over 600 employees globally, Nexo remains a significant player in the crypto lending industry. The platform’s commitment to regulatory compliance and user education underscores its dedication to fostering a secure and informed environment for its users.

The resumption of new registrations reflects Nexo’s ongoing efforts to adapt to regulatory changes while continuing to provide its services in the UK market.

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