Nexo to Phase Out Cashback for UK Exchange and Card Transactions as FCA Rules Approach

Bybit said it will suspend its U.K. operations entirely and Paypal said it would temporarily stop crypto purchases.

AccessTimeIconOct 6, 2023 at 10:49 a.m. UTC
Updated Oct 6, 2023 at 1:45 p.m. UTC
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Crypto platform Nexo plans to phase out some of the products that it offers to U.K. clients in response to new rules in the country, a company spokesperson told CoinDesk on Friday.

From Oct. 8 It will be initiating the phase-out of cashback payouts for Nexo Exchange and Nexo Card transactions, as well as referral and affiliate programs.

Nexo is putting these measures in place to comply with the U.K. Financial Conduct Authority's incoming promotions rules for crypto which require firms to be registered to approve their own ads as well as make changes to their systems - like giving first time buyers at least 24 hours to re-confirm if 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 rules will also take effect by Oct. 8 but companies can apply for a three month extension. Companies have been getting ready and firms like PayPal and Bybit recently said they will stop offering certain crypto services to U.K. clients ahead of the new rules, while Luno has halted some of its U.K. clients from investing in crypto.

Update (0ct. 6 13:35 UTC): Clarifies what Bybit and PayPal are doing in dec.

Edited by Parikshit Mishra.


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Camomile Shumba

Camomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.

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