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UK Regulatory Changes Prompt Nexo to Discontinue Cashback for Exchange and Card Transactions

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Oct 7, 2023 at 02:47 pm

Recent regulatory changes in the UK have prompted major adjustments in the operations of crypto platforms. Bybit and PayPal have both announced significant shifts in their services, while Nexo, a cryptocurrency platform, is strategically phasing out certain offerings for its UK clientele. Here's an overview of the developments.

Bybit, a prominent cryptocurrency exchange, has taken a definitive step by suspending its operations entirely in the UK. This move comes in response to the evolving regulatory landscape and the need for compliance.

In parallel, PayPal, a leading online payment platform, has opted to temporarily halt crypto purchases. This decision is aligned with the company's commitment to adhering to regulatory guidelines, ensuring a secure financial environment for its users.

Nexo, a crypto platform known for its diverse offerings, has announced a gradual phase-out of specific products for its UK customers. Starting from October 8th, Nexo will discontinue cashback payouts for transactions made on the Nexo Exchange and Nexo Card. Additionally, referral and affiliate programs will be wound down.

These measures by Nexo are a proactive response to the new promotional rules introduced by the UK Financial Conduct Authority (FCA) for cryptocurrencies. The FCA mandates that firms must be registered to approve their own advertisements and implement changes to their systems. For instance, first-time buyers must be given at least 24 hours to confirm their interest in receiving investment invitations.

A spokesperson from Nexo emphasized the company's dedication to its UK community and their topmost priority towards compliance. This reflects Nexo's broader mission of fostering a robust crypto ecosystem. Additionally, the platform's enhanced interface underscores their commitment to providing a seamless user experience in the evolving financial advertising landscape.

The FCA's new regulations are scheduled to take effect by October 8th, though companies have the option to apply for a three-month extension. In light of these impending changes, numerous firms, including PayPal and Bybit, have proactively announced alterations in their services for UK clients. Similarly, Luno, another crypto platform, has implemented restrictions on certain UK clients from engaging in crypto investments.

The recent regulatory shifts in the UK have set in motion a series of strategic adjustments within the crypto industry. While platforms like Bybit and PayPal are temporarily altering their services, Nexo's phased approach demonstrates a commitment to compliance and a long-term vision for a robust crypto ecosystem. As the regulatory landscape continues to evolve, these adaptations serve as a testament to the industry's resilience and adaptability.

Read more: PayPal and Bybit Join Forces: PYUSD Stablecoin Listing Marks a New Era in Crypto Commerce

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