- Nexo's Updates and Resumption
- UK Political Shifts and Crypto Regulation
- Market Reaction and Company Actions
Nexo, a centralized crypto lender, resumes UK client registrations after a ten-month pause, having completed upgrades to meet Financial Conduct Authority (FCA) standards.
Nexo's Updates and Resumption
Nexo suspended new user registrations in the UK in December 2023 due to changes in local regulatory guidelines. This move was in response to the UK's tightening regulations on cryptocurrency and financial services. The upgrades, conducted in collaboration with Gateway 21, an FCA-authorized and regulated financial promotion approver, aim to increase risk awareness and maintain high standards of client care in the UK market. Changes include cooling-off periods, specialized risk warnings for UK clients, and mandatory compliance measures.
UK Political Shifts and Crypto Regulation
Rishi Sunak's Conservative party was defeated by the Labour Party in the recent UK general election. The Labour Party had been out of power for fourteen years consecutively. Since Keir Starmer's leadership, there has been a shift in the UK's domestic cryptocurrency industry. The Labour Party advocates for a more competitive market, giving new attention to cryptocurrency.
Market Reaction and Company Actions
In response to new regulations, crypto exchanges such as Coinbase and Binance removed news feeds for UK residents to avoid regulatory issues. Meanwhile, companies like PayPal and Revolut struggled with the changes, and Bybit decided to exit the UK market entirely.
Nexo's resumption of operations in the UK after a long hiatus underscores the company's significant efforts to adapt to new regulatory standards. The shifting political and regulatory landscape in the UK continues to impact the strategies and actions of cryptocurrency companies.
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