Nexo is resuming new user registrations in the United Kingdom after a 10-month pause in the onboarding process.
The crypto lending platform implemented multiple key updates in response to the regulatory guidelines set by the UK’s Financial Conduct Authority (FCA), according to an announcement shared with Cointelegraph.
Nexo’s new onboarding flow is more aligned with the FCA’s guidelines, primarily aimed toward improving investor protection via risk awareness, according to a Nexo spokesperson.
The spokesperson told Cointelegraph:
“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 a mandatory, detailed risk warning that users must read, a cool-off period, and FCA-aligned assessments.”
Nexo halted new user registrations in the UK in December 2023 to implement the aforementioned regulatory upgrade and become more compliant with the FCA.
Nexo started phasing out some of its UK services in October 2023, in response to the regulatory changes of the FCA. Nexo halted cashback payouts for the Nexo Exchange and Nexo Card, while also halting referral and affiliate programs On Oct. 8, 2023.
Other notable companies like PayPal and Bybit have also phased out some crypto-specific offerings during the same period. PayPal suspended crypto sales for UK users for three months, while Bybit also halted crypto services for UK residents after the FCA’s warning.
New approach enhances user risk awareness
The crypto lending platform’s 10-month pause enabled Nexo to realign its onboarding process with the FCA’s regulatory guidelines.
Moreover, the new approach will enhance user risk awareness, improving the overall crypto adoption process, said 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.”
The current onboarding process is similar to a simple checklist that new users can follow step-by-step and gain access to expensive educational materials.
Nexo is among the most popular crypto lending platforms, with over 600 employees worldwide.
UK remains a key market for Nexo
“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.”
The new onboarding process and educational materials will help UK investors navigate the complexities of the crypto space, added 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.”
Nexo isn’t the only crypto firm that faced difficulties in the UK. In July, Coinbase’s UK arm was fined $4.5 million by the FCA for breaching a voluntary agreement related to user onboarding.
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