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CEX.IO voluntarily suspended its services in the U.K. following the introduction of new rules last year.
Key Notes
CEX.IO may have just met the regulatory requirements of the Financial Conduct Authority (FCA), the UK’s financial regulator.Last October, the FCA introduced new financial promotion regulations that sought stricter guidelines for the promotion of crypto assets.To comply with the FCA’s rules, CEX.IO had to partner with Gateway 21, an FCA-authorized financial promotion approver.CEX.IO may have just met the regulatory requirements of the Financial Conduct Authority (FCA), the U.K.’s financial regulator. This means that the once popular centralized crypto exchange may now resume its operations in the country after an earlier suspension.
Last October, the FCA introduced new financial promotion regulations that sought stricter guidelines for the promotion of crypto assets. Once the regulation was implemented, CEX.IO voluntarily suspended its services in the region. That is, despite the firm’s strong foothold in the U. K. market at the time, with British users representing nearly 69% of its customer base within the European Economic Area.
Also, shortly before suspending its services, CEX.IO posted 26.9% quarter-over-quarter growth in the area of its transaction volumes. This meant that the exchange was undoubtedly a major force to reckon with in the crypto ecosystem of the U.K.
Now, having complied with all the regulatory standards if the FCA, CEX.IO will be looking to reclaim its position as soon as possible.
How CEX.IO Met FCA Guidelines
The FCA’s new rules for crypto asset promotions took effect on October 8, 2023. It mandated crypto firms to include cooling-off periods and issue specialized risk warnings to UK clients. Additionally, users must complete investor categorization questionnaires and undergo assessments. This is to ensure that they are well prepared and have the basic knowledge that they need to invest in digital assets.
Essentially, the FCA is hoping that the new regulatory regime will bring more transparency and accountability into crypto marketing. Following the decision, the regulator issued over 450 alerts against illegal crypto promotions before 2023 ran out.
Meanwhile, to comply with the FCA’s rules, CEX.IO had to partner with Gateway 21, an FCA-authorized financial promotion approver. Although the exchange is currently still pursuing an Anti-Money Laundering (AML) registration from the FCA, the partnership already allows it to carry on with its services. However, all operations are currently being provided from Lithuania.
Interestingly, CEX.IO is not the only crypto firm using this ‘third-party approver’ method to enter the U.K. market. Just like the exchange, Nexo also recently entered into a similar collaboration to regain entry into the market.
Speaking about the recent development, CEX.IO’s UK Managing Director, Rich Evans, has reiterated that the exchange remains focused on regulatory compliance. That is, even if it comes at the expense of company growth.
“We operate strictly within current regulations and hold 40 licenses and registrations worldwide. Our top priority has always been the responsibility we bear towards our users, even if it means sacrificing business growth,” his statement reads.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
