Nexo Resumes UK Registrations After 10-Month Pause

Nexo, a cryptocurrency lending platform, resumed operations in the UK after 10 months, as it had to align its processes with the Financial Conduct Authority’s (FCA) compliance guidelines to
protect investors. In response to guidelines set by the FCA, Nexo paused onboarding and registrations to update their processes, according to a spokesperson for the lending platform. The updates ensured that the onboarding process was more aligned with the FCA, increasing investor protection through risk awareness.

Pausing UK Services in 2023

Nexo had to pause all new UK registrations in December 2023, however, services were already being phased out as early as October 2023. This was because of FCA regulatory changes. Initially, Nexo Echange and Nexo Card payouts were paused, as were any affiliate and referral programmes.

According to a Nexo spokesperson, “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.”

Nexo was not alone in pausing its crypto services. Bybit and PayPal also phased out crypto- related offerings during that time, due to warnings from the FCA. PayPal halted all crypto sales
for three months, while Bybit also paused all their crypt-specific services.

New Onboarding Approach Improves Investor Protection

Nexo’s new onboarding process allows investors to be better protected via risk awareness. According to a company spokesperson: “It is designed to ensure that users fully understand the risks associated with cryptocurrencies and the products we offer before engaging with our platform. This includes mandatory, detailed risk warning that users must read, a cool-off period,
and FCA-aligned assessments.”

This is vital, as crypto has seen a boom in the past few years. Crypto use has stretched across industries, from entertainment to retail, and investors who are interested in purchasing crypto
should know any risks involved. For example, when it comes to entertainment, UK casinos not listed on GAMSTOP often allow crypto deposits and withdrawals. Players wanting to gamble
with crypto should know the risks associated with purchasing digital currencies.

The new registration and onboarding process is a type of checklist, where users have to work their way through informational materials that educate them on the potential risks of crypto
investing.

Nexo Sees A Lot Of Potential In The UK Market

Nexo has an international user base and is one of the most popular lending platforms in the crypto industry. It currently employs over 600 people across the globe and claims to have over 7 million users in 200 jurisdictions. And now the company is excited to access the UK market too. According to Product Owner at Nexo, Elitsa Taskova, “We are deeply invested in cultivating and strengthening our relationships here, empowering our clients to make well-informed decisions with unparalleled access to expert knowledge and support.”

The company is committed to their UK clients as the UK has been a cornerstone of it, and the new updates are set to meet the FCA’s approval. Along with PayPal, Bybit and Nexo, Coinbase also recently came face-to-face with the FCA’s regulations. The company was fined £3.5m in July after breaching an agreement with the FCA relating to their onboarding process.