In reaction to new regulations in the U.K., cryptocurrency platform Nexo plans to phase out some of the products it provides to customers there, a company representative said in an intee on Friday.The phase-out of cashback payments for Nexo Exchange and Nexo Card transactions, as well as referral and affiliate programs, will begin on October 8.
Nexo is taking these steps to be in compliance with the upcoming cryptocurrency promotions rules from the U.K. Financial Conduct Authority, which call for businesses to be registered in order to approve their own ads and make system changes, such as giving first-time buyers at least 24 hours to re-confirm whether they want to receive invitations to invest.
“Nexo is committed to our U.K. community, and we regard our compliance responsibilities with the highest priority, reflecting our aim of nurturing a robust crypto ecosystem,” a company spokesperson said. “Additionally, our enhanced interface epitomizes our dedication to a consistent user experience in the evolving financial advertising context.”
The FCA regulations must also go into force by October 8; however, businesses may request a three-month delay.Businesses have been preparing, and recently companies like PayPal and Bybit announced they would stop providing certain crypto services to U.K. clients in anticipation of the new regulations, while Luno has stopped some of its U.K. clients from investing in cryptocurrency.