Nexo has resumed accepting registrations from UK clients as of Tuesday, 24, 2024, after implementing several upgrades to comply with the requirements of the UK’s financial regulator, the Financial Conduct Authority (FCA).
The crypto lending platform suspended new registrations ten months ago to comply with FCA’s investor protection guidelines. The guidelines involved adding specialized risk warnings for UK clients and implementing mandatory investor categorization and appropriateness assessment for its products. The required changes were reportedly implemented in collaboration with Gateway 21, an FCA-authorized financial promotion approver.
“Our pause from onboarding new clients in late 2023 was precisely to ensure our technical foundation could support this novel process and ensure a streamlined, user-friendly registration, thereby lowering, rather than raising the bar for adoption,”
a Nexo spokesperson told Cointelegraph.
Meanwhile, Nexo’s Chief Product Officer, Elitsa Taskova, emphasized the importance of the UK as a critical market for the platform.
“The UK has long been a cornerstone market for Nexo, and our commitment to our clients here remains resolute. When faced with rigorous yet necessary regulation, we chose to stand firm, diligently adapting our platform to meet these stringent requirements,”
Taskova stated.
Alongside the resumption, Nexo plans to offer tailored educational resources and support to help UK clients understand and navigate the FCA’s guidelines. The company believes it is responsible for clarifying the regulatory framework and providing clients with the necessary tools to confidently navigate the digital asset space and the UK-specific onboarding process.
Nexo is not the only cryptocurrency company experiencing difficulties in the UK. In July, Coinbase was fined £3.5 million by the UK’s FCA for violating client restrictions related to “High-Risk” clients. Other notable companies such as PayPal and Bybit have also discontinued some of their crypto-specific services during this time. PayPal stopped crypto sales for UK users for three months, and Bybit also suspended crypto services for UK residents following the FCA’s warning.
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