CEX.io, a centralized cryptocurrency exchange, has resumed operations in the United Kingdom following its temporary suspension in 2023.
The platform halted its services to ensure regulatory compliance with the Financial Conduct Authority’s (FCA) new Regime of Financial Promotions policy.
In a Q&A with Cointelegraph, Rich Evans, the managing director at CEX.io, stated that the exchange “voluntarily suspended operations for UK customers in October 2023.”
“In our efforts to reenter the UK market, CEX.IO has taken a measured and responsible approach, adhering to the FCA’s requirements without seeking shortcuts.”
Related: UK gov’t introduces bill to clarify crypto’s legal status
UK regulation adaptation
Through 2024, the status of UK regulation has been in flux, introducing new legislation to clarify crypto legal requirements and pushing for, albeit slow, crypto firm registration.
Evans explained that the UK has long been “a key market” for the crypto exchange as “one of the few platforms on the FCA’s temporary registration regime.”
“While CEX.IO has extensive experience navigating local regulations [...] the unique nature of the UK regulatory processes required additional time and effort to implement effectively.”
Related: Owner of unlicensed UK crypto ATM network faces criminal charges
Support for stricter crypto rules
CEX.io strongly supported the UK’s shifting regulatory stance and its introduction of a progressively stricter legislative framework for crypto-related firms.
Despite the FCA’s new regulations being “perceived as more stringent compared to other jurisdictions,” Evans said they are primarily designed to “protect consumers and promote informed investment decisions.”
“With the upcoming changes under the Financial Services and Markets Act (FSMA), CEX.IO is committed to staying ahead of regulatory requirements and supporting the U.K.'s growth as a leader in the crypto markets.“
Related: UK Parliament could summon Elon Musk over X operations
UK regulatory ripple effects
Aligning with the suspension of CEX.io’s services in October 2023, crypto lending platform Nexo started phasing out its UK services in response to FCA-related regulatory compliance pressures.
On Sept. 3, the lending platform resumed new user registrations in the UK after its 10-month hiatus after addressing multiple key updates in response to the FCA’s regulatory guidelines.
High-profile firms like PayPal and Bybit also phased out certain crypto-related offerings during the same period after the FCA set out the new guidelines.
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