Nexo is ending some of its crypto services for clients in the
United Kingdom. This is in response to the upcoming regulatory changes imposed
by the Financial Conduct Authority (FCA).
According to a report by Coindesk, the crypto platform will
phase out cashback payouts for transactions on Nexo Exchange and Nexo Card and
terminate their referral and affiliate programs effective October 8.
This move aligns with the FCA’s stringent promotion rules
for the cryptocurrency industry, requiring companies to be registered for
self-approval of advertisements and to modify their systems to allow
first-time buyers a minimum of 24 hours to reconsider their investment decisions.
Nexo joins the ranks of companies adjusting their offerings
to align with FCA’s regulations, which will be effective from October 8.
Several companies, including PayPal and Bybit, have withdrawn specific
crypto-related services from their offerings to UK clients.
In August, PayPal announced its intention to suspend cryptocurrency sales to its users in the UK for at least three months, commencing on October 1. Similarly, Bybit announced last month that it will no longer accept new
account applications from residents in the UK. Furthermore, on October 8, the exchange will no longer accept new deposits, halt new contracts, and limit
changes to existing user positions.
Last month, another crypto exchange, Luno, announced that it was
temporarily halting certain crypto investments for its clients in the UK beginning
October 6. While clients affected by Luno’s temporary suspension can still sell
existing holdings and withdraw funds, they cannot make new crypto investments
as of October 6.
Restructuring and Legal Challenges
In May, Nexo disbanded two of its subsidiaries in the UK,
Nexo Financial Services Limited and Nexo Clearing
Clearing
Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th
Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th
Read this Term. This move was revealed in an
official filing with the UK Companies House, as reported by Bloomberg. However,
Nexo’s Co-Founder, Antoni Trenchev, emphasized that the company was not leaving
the European markets. Instead, he mentioned that it was undergoing a
restructuring process, reevaluating how it provides services to its clients.
This decision coincided with a legal tussle against the
company in Bulgaria. In January, Bulgarian prosecutors opened an investigation
against Nexo, accusing the company of failing to prevent money laundering and
violating sanctions against Russia.
Nexo is ending some of its crypto services for clients in the
United Kingdom. This is in response to the upcoming regulatory changes imposed
by the Financial Conduct Authority (FCA).
According to a report by Coindesk, the crypto platform will
phase out cashback payouts for transactions on Nexo Exchange and Nexo Card and
terminate their referral and affiliate programs effective October 8.
This move aligns with the FCA’s stringent promotion rules
for the cryptocurrency industry, requiring companies to be registered for
self-approval of advertisements and to modify their systems to allow
first-time buyers a minimum of 24 hours to reconsider their investment decisions.
Nexo joins the ranks of companies adjusting their offerings
to align with FCA’s regulations, which will be effective from October 8.
Several companies, including PayPal and Bybit, have withdrawn specific
crypto-related services from their offerings to UK clients.
In August, PayPal announced its intention to suspend cryptocurrency sales to its users in the UK for at least three months, commencing on October 1. Similarly, Bybit announced last month that it will no longer accept new
account applications from residents in the UK. Furthermore, on October 8, the exchange will no longer accept new deposits, halt new contracts, and limit
changes to existing user positions.
Last month, another crypto exchange, Luno, announced that it was
temporarily halting certain crypto investments for its clients in the UK beginning
October 6. While clients affected by Luno’s temporary suspension can still sell
existing holdings and withdraw funds, they cannot make new crypto investments
as of October 6.
Restructuring and Legal Challenges
In May, Nexo disbanded two of its subsidiaries in the UK,
Nexo Financial Services Limited and Nexo Clearing
Clearing
Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th
Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th
Read this Term. This move was revealed in an
official filing with the UK Companies House, as reported by Bloomberg. However,
Nexo’s Co-Founder, Antoni Trenchev, emphasized that the company was not leaving
the European markets. Instead, he mentioned that it was undergoing a
restructuring process, reevaluating how it provides services to its clients.
This decision coincided with a legal tussle against the
company in Bulgaria. In January, Bulgarian prosecutors opened an investigation
against Nexo, accusing the company of failing to prevent money laundering and
violating sanctions against Russia.