A Nexo representative said that the new registration process on the platform now complies with FCA guidelines. Investors are now better informed about the risks of investing in cryptocurrencies.
“We understand that users need to be warned of the risks before engaging with our platform. In addition to the warning, users are given a period during which they can consider and evaluate their investment strategy. This is in line with FCA requirements,” a Nexo spokesperson explained.
Nexo suspended new UK user registrations in December. In order to comply with the FCA, Nexo began phasing out some services in the UK in October 2023: the crypto lender stopped cashback payments for Nexo Exchange and Nexo Card, and closed referral and affiliate programs.
Nexo is not the only crypto firm to have run into trouble in the UK. In July, the FCA fined US crypto exchange Coinbase $4.5 million for serving high-risk customers. In February, the regulator said it had issued 450 warnings over three months about illegal cryptocurrency advertising with vague risk statements.
Source: Bits
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