Crypto Nexo UK Exchange Will Phase Out Cashback From October 8

Key Points:

• Nexo UK exchange is discontinuing cashback services for UK clients due to the stricter regulations of the FCA.
• New FCA rules classify cryptocurrencies as “restricted” investments, mandating clear risk warnings and banning referral bonuses.
• Nexo joins other companies in adjusting services for UK clients ahead of these regulatory changes

In response to the impending regulations of the UK’s Financial Conduct Authority (FCA), cryptocurrency lending platform Nexo has announced the gradual cessation of its cashback services for UK exchanges and credit card transactions, according to CoinDesk.

Nexo UK Exchange Adapts to Stricter FCA Regulations

Commencing on October 8, Nexo Exchange and Nexo Card transactions, as well as referral and affiliate programs, will be phased out.

The stricter cryptocurrency marketing rules set forth by the FCA will classify cryptocurrencies as “restricted” mass-market investments. Under these rules, any promotional activities must include “clear risk warnings” and are prohibited from offering investment incentives such as “referral bonuses” or “new customer rewards.”

Nexo UK exchange is taking these steps to ensure compliance with the FCA’s new regulations, which mandate firms to register and approve their own advertisements, as well as make system adjustments like providing first-time buyers with at least 24 hours to confirm their interest in investment invitations.

Crypto Service Providers in the UK Brace for Regulatory Changes

Companies found in violation of the FCA’s forthcoming consumer marketing regulations could face penalties of up to two years in prison. These regulations are scheduled to go into effect on October 8th, although companies can apply for a three-month extension.

Nexo UK exchange joins other cryptocurrency service providers in discontinuing specific crypto services for UK clients ahead of the new regulatory framework. Additionally, Luno has suspended certain UK clients from investing in cryptocurrencies as part of these regulatory adjustments.

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