Nexo Reopens New User Registrations in the UK After 10-Month Suspension

Nexo, a leading crypto lending platform, has announced the reopening of new user registrations in the UK after a 10-month suspension. This move comes after the implementation of significant updates to comply with regulatory guidelines from the UK Financial Conduct Authority (FCA).

The new onboarding process is designed to improve investor protection, primarily through risk awareness. A Nexo spokesperson stated that the process ensures users fully understand the risks associated with cryptocurrencies and the platform’s product offering. This includes mandatory detailed risk warnings, cool-off periods, and FCA-compliant assessments.

Nexo suspended new user registrations in the UK in December 2023 to implement the regulatory upgrades and become more FCA compliant. During this period, the platform phased out certain UK services, stopped cashback payments, and suspended its referral and affiliate programs.

Enhanced User Risk Awareness

The 10-month suspension allowed Nexo to realign its onboarding process with the FCA’s regulatory guidelines. The new approach will improve users’ risk awareness and the overall crypto adoption process. A Nexo spokesperson stated, “We stopped onboarding new clients in the second half of 2023 to ensure our technological infrastructure could support this new process and ensure a simple, user-friendly sign-up, lowering the barrier to adoption.”

The current onboarding process is a simple step-by-step checklist that new users go through, providing access to extensive educational materials. As one of the most popular crypto lending platforms, Nexo has over 600 employees worldwide.

The UK: A Foundational Market for Nexo

The UK has long been a crucial market for Nexo, and the platform’s commitment to its clients in the region remains unwavering. A Nexo spokesperson stated, “When faced with strict and necessary regulation, we chose to stand firm and adapt our platform to these tough requirements.”

The new onboarding process and educational materials will help UK investors navigate the complexities of cryptocurrencies. A Nexo spokesperson added, “We are deeply invested in nurturing and strengthening relationships here, ensuring clients have access to expertise and support to make informed decisions.”

In a related development, Coinbase’s UK unit was fined $4.5 million by the FCA in July for breaching a voluntary agreement related to user onboarding.