Nexo Responds to FCA: Ending Crypto Card Transactions in the UK

<p>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).</p><p>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. </p><p>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.</p><p>Nexo Adapting to FCA Regulations</p><p>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Several companies, including PayPal and Bybit, have withdrawn specific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.</p><p>In August, PayPal announced its intention <a href="https://www.financemagnates.com/cryptocurrency/paypal-halts-uk-crypto-sales-fcas-stricter-rules-take-center-stage/" target="_blank" rel="follow">to suspend cryptocurrency sales</a> to UK users 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
<a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a> will no longer accept new deposits, halt new contracts, and limit
changes to existing user positions.</p><p>Last month, another crypto exchange, Luno, announced that it was
<a href="https://www.financemagnates.com/cryptocurrency/luno-responds-to-fcas-looming-crypto-rules-halts-uk-investments-temporarily/" target="_blank" rel="follow">temporarily halting certain crypto investments</a> for its UK clients 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.</p><p>Restructuring and Legal Challenges </p><p>In May, Nexo <a href="https://www.financemagnates.com/cryptocurrency/crypto-lender-nexo-moves-to-disband-uk-subsidiaries/" target="_blank" rel="follow">disbanded two of its subsidiaries</a> in the UK,
Nexo Financial Services Limited and Nexo <a href="https://www.financemagnates.com/terms/c/clearing/">Clearing</a>. 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.</p><p>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.</p>

This article was written by Jared Kirui at www.financemagnates.com.