CEX.IO Back in UK After Meeting FCA Compliance

CEX.IO, a cryptocurrency exchange, has resumed operations in the United Kingdom following its effective compliance with the Financial Conduct Authority’s (FCA) regulations.

The company voluntarily suspended its UK services in October 2023 in response to the FCA’s implementation of new financial promotion regulations for crypto assets.

The UK was a substantial market for CEX.IO before the suspension, with 69% of its European Economic Area customers residing in the country, the exchange stated in a press release shared with CryptoNews.

CEX.IO Provides Access to 190 Digital Assets

Currently, the exchange provides UK consumers access to 190 digital assets.

Rich Evans, Managing Director of CEX.IO UK, commented, “Our objective is to fortify our presence in the United Kingdom by complying with new regulatory standards and fostering the region’s development as a cryptocurrency market hub.”

Additionally, he emphasized CEX.IO’s impeccable regulatory record and robust security protocols over its eleven-year history.

According to Evans, the company’s business model has consistently prioritized legal compliance and customer trust, even if it means forgoing short-term growth.

Even though CEX.IO is currently in the process of obtaining comprehensive Anti-Money Laundering (AML) registration with the FCA, the exchange re-entered the UK market through a partnership with Gateway 21.

CEX.IO is assisted in meeting compliance requirements by this FCA-authorized firm, which serves as a financial promotion approver.

CEX.IO’s services are presently being provided from Lithuania, a strategy that crypto companies are increasingly adopting to navigate the UK’s regulatory environment.

For instance, Nexo, a crypto lender, recently resumed operations in the United Kingdom due to a comparable agreement with Gateway 21.

UK-based crypto firms must implement risk warnings and cool-off periods designed explicitly for UK clients as part of the compliance process.

Additionally, users must complete investor categorization questionnaires and endure assessments to guarantee that their investment decisions are suitable.

Under the new regulatory regime, these procedures have become the norm for crypto companies that operate in the United Kingdom.

CEX.IO was established as a Bitcoin mining pool

CEX.IO can be traced back to 2013, when it was established as the GHash.IO mining pool.

Before discontinuing operations, the pool connected miners who generated more than 583,000 Bitcoins.

GHash.IO’s control of nearly 51% of Bitcoin’s hash rate at its peak has prompted apprehension in the crypto community regarding the potential for a “51% attack,” which could conceivably enable the pool to manipulate transactions.

GHash.IO ultimately shuttered its doors due to the departure of numerous miners from the pool to prevent this.

The FCA’s new regulations for financial promotions of crypto assets, implemented in October 2023, were designed to enhance marketing transparency within the sector.

Since its implementation, the FCA has issued over 450 notifications regarding illegal promotions.

The regulator has been particularly vigilant in enforcing these regulations, cautioning that even social media posts, such as crypto parodies, may contravene the requirements.

To prevent noncompliance, cryptocurrency exchanges, such as Binance and Coinbase, have modified their services for consumers in the United Kingdom.

Many companies have found the new regulatory framework challenging, and some, such as Bybit, have opted to withdraw entirely from the UK market.

Nevertheless, several significant exchanges, such as Binance, OKX, and Coinbase, have partnered with third-party firms authorized by the FCA to continue operating in the United Kingdom.