Nexo Implements Measures to Protect U.K. Users
Since its inception, Nexo has prioritized compliance and a responsible user-friendly product offering.
The Financial Conduct Authority (FCA) has introduced industry-wide guidelines for cryptoassets. In line with our cooperative dialogue with the FCA, and to ensure our U.K. residents can continue using Nexo, we have implemented two types of questionnaires for our U.K. community – an investor categorisation and an appropriateness assessment focused on general knowledge and specific products.
The changes outlined below apply only to clients residing in the United Kingdom.
What can you expect?
Effective July 2, 2024, and until July 16, 2024, all clients residing in the U.K. are required to complete an investor categorisation and an appropriateness assessment to continue using Nexo as per the established FCA procedures.
These measures are designed to assess users' experience with and knowledge of investing, and more particularly investing in cryptoassets in line with the FCA guidelines.
What are the changes?
From July 2, 2024, upon first login on either the Nexo web or mobile app, U.K. residing users are prompted to:
Fill Out an Investor Categorisation: During this stage, we will ask our users in the U.K. to specify their investor type— sophisticated (experienced), high net worth, or retail (restricted) investor. Additionally, we will gather any necessary information to confirm their investor type, such as the proportion of their assets invested or their willingness to invest in higher-risk products (like cryptoassets).
Complete an Appropriateness Assessment: We will ask our users in the U.K. to complete a set of multiple-choice questions, focused on general knowledge as well as specifics on the Borrow and Earn products, to assess users’ awareness of the risks involved in cryptoassets and cryptoasset-derived products and services. Required by the FCA, this will help verify that you make informed and proportionate investment decisions.
You need to complete both questionnaires to maintain uninterrupted access to Nexo products.
What if I have not completed the assessments?
If you have not completed both questionnaires by July 16, 2024, you will be unable to use Nexo products and services until the questionnaires are completed. You will see a banner on both the Nexo web and mobile app prompting you to complete the questionnaires, so make sure to complete both to ensure uninterrupted access. Make sure you update to the latest version of the Nexo app to access the most recent information and features.
What is an investor categorisation?
This is a questionnaire that classifies your investor profile and specifies the proportion of your assets invested or willing to invest in higher-risk products. You will be asked a set of questions and can choose from three categories based on your personal circumstances:
For more information on the investor types, visit our dedicated support article.
Please note that not passing this assessment will result in limited access.
What is an appropriateness assessment?
This set of multiple-choice questions aims to assess your general knowledge and risk awareness about cryptoassets and Nexo products utilising cryptoassets. Required by the FCA, this will help verify you make informed and proportionate investment decisions.
For more information on the questionnaire, read this article.
What happens if I fail an appropriateness assessment?
If you do not successfully complete an assessment, you can retake it immediately. If you do not pass on the second attempt, you will be able to try again after 24 hours.
What more can I learn?
We have compiled multiple comprehensive risk warnings that we encourage you to review carefully: General Risks Warning, Borrow and Booster Risk Warnings, and Earn Risk Warnings.
We have prepared educational content to help you and further enhance your knowledge:
Details on: Borrow, Booster, Earn, Repayments, and Information Security
We have been working closely with Financial Promotions Approver Gateway 21 to ensure our processes align with regulatory requirements.
What products can I access after passing an appropriateness assessment?
For more information and guidance on the two assessments, read our dedicated article.
Nexo’s Commitment to the U.K. Community
Completing these industry-wide assessments ensures that U.K. residents can continue using Nexo in line with FCA guidelines, keeping our products accessible and user-friendly.
Our Support Team is always available to help if you have any questions.
These materials are accessible globally, and the availability of this information does not constitute access to the services described, which services may not be available in certain jurisdictions. These materials are for general information purposes only and not intended as financial, legal, tax or investment advice, offer, solicitation, recommendation, or endorsement to use any of the Nexo Services and are not personalized, or in any way tailored to reflect particular investment objectives, financial situation or needs.
Digital assets are subject to a high degree of risk, including but not limited to volatile market price dynamics, regulatory changes, and technological advancements. The past performance of digital assets is not a reliable indicator of future results. Digital аssets are not money or legal tender, are not backed by the government or by a central bank, and most do not have any underlying assets, revenue stream, or another source of value.
Independent judgment based on personal circumstances should be exercised, and consultation with a qualified professional is recommended before making any decision.
