1. UK Regulation Adaptation
2. Support for Stricter Rules
3. Regulatory Ripple Effects

CEX.io, a centralized cryptocurrency exchange, has resumed operations in the United Kingdom following a temporary suspension in 2023. The suspension was necessary to comply with the Financial Conduct Authority’s (FCA) new Regime of Financial Promotions policy.

UK Regulation Adaptation

Through 2024, the status of UK regulation has been in flux, introducing new legislation to clarify crypto legal requirements, and pushing for a slow crypto firm registration process. In a Q&A with Cointelegraph, Rich Evans, the managing director at CEX.io, stated that the exchange “voluntarily suspended operations for UK customers in October 2023.” Evans added: “In our efforts to reenter the UK market, CEX.IO has taken a measured and responsible approach, adhering to the FCA’s requirements without seeking shortcuts.”

Support for Stricter Rules

CEX.io strongly supported the UK’s shift towards stricter regulations for crypto-related firms. Despite the FCA’s new regulations being perceived as more stringent compared to other jurisdictions, the company believes they are designed to protect consumers and promote informed investment decisions. Evans noted: “With the upcoming changes under the Financial Services and Markets Act (FSMA), CEX.IO is committed to staying ahead of regulatory requirements and supporting the U.K.'s growth as a leader in the crypto markets.”

Regulatory Ripple Effects

Aligning with the suspension of CEX.io’s services in October 2023, crypto lending platform Nexo started phasing out its UK services in response to FCA-related regulatory compliance pressures. In September, the platform resumed new user registrations in the UK after a 10-month hiatus following key updates to comply with FCA guidelines. High-profile firms like PayPal and Bybit also phased out certain crypto-related offerings during the same period after the FCA set out the new guidelines.

The resumption of CEX.io’s operations in the UK underscores the importance of strict regulatory compliance, which aids in protecting consumers and strengthening trust in the cryptocurrency markets.