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Crypto lender Nexo has resumed onboarding new clients in the UK after successfully implementing a series of upgrades to meet compliance requirements set by the Financial Conduct Authority (FCA). According to a report from The Block, this development marks an important step for Nexo in maintaining its presence in the UK’s growing crypto market while adhering to its regulatory framework.
Nexo Upgrade Now Aligns With the FCA Regulations
Nexo’s compliance measures are designed to enhance investor protection and transparency, aligning with the FCA’s stringent regulations. Key changes include the introduction of cool-off periods, specialized risk warnings, and the establishment of dedicated support services. These features provide users with clear, actionable information and allow them time to reconsider their investments.
This enhanced user experience reflects Nexo’s commitment to fostering a secure and regulated environment for UK investors. Meanwhile, the changes were implemented in partnership with Gateway 21, an FCA-authorized and regulated financial promotion approver.
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Before using the platform, UK users must complete an investor categorization questionnaire and undergo an appropriateness assessment. These steps ensure investors understand the risks involved in crypto lending and that the products Nexo offers meet their financial situation. Likewise, the assessments are part of the broader regulatory framework that aims to protect consumers from potential risks associated with digital assets.
Nexo Cleared off Criminal Activities
Recall that in January 2023, a group of prosecutors, investigators, and internal agents raided Nexo’s offices. The raids were in connection to a massive financial scam involving money laundering and the violation of sanctions against Russia.
However, in December, the Bulgarian Prosecutor’s Office closed its high-profile investigation into Nexo after it found no evidence of criminal activities against the platform and its associates. This consequently brought an end to its extensive probe against the lender.
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In response, Nexo co-founder and managing partner Antoni Trenchev stated that the Bulgarian Prosecutor’s Office, dropping all charges, clearly demonstrated that the attack on Nexo was politically motivated and should never have occurred.
Stablecoin Regulation in the UK
A few months ago, the United Kingdom introduced new stablecoin regulations and guidelines for other crypto asset activities. According to the Economic Secretary Bim Afolami at the Innovative Finance Global Summit, this move brings operations such as running an exchange, managing customer assets, and other related activities under a regulatory framework.
The legislation will impact crypto asset activities such as staking, exchange, and custody services, in addition to stablecoins. Under the new regulations, these activities will comply with specific rules to ensure security and transparency for investors.
