Nexo Implements Measures to Protect U.K. Users

Jun 25, 2024•5 min read

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, allowing you to define your investor profile, and an Appropriateness Assessment, focused on your general knowledge of crypto and specific products. These measures are designed to protect users' financial health, and enable us to assess theirexperience with and knowledge of investing, and more particularly, investing in cryptoassets in line with the FCA guidelines.

​​The changes outlined below apply only to clients residing in the United Kingdom.

For new Nexo clients: If you are a new client to Nexo you may find it useful to review our step-by-step registration guide first. It will guide you through every phase of our onboarding including the Investor Categorisation and Appropriateness Assessment.

What necessitated the assessments

As of 2024, crypto investors residing in the U.K. are required to complete an Investor Categorisation and Appropriateness Assessment when onboarding with platforms operating under the FCA’s FinProm regime.
Since then, new clients are required to complete the Investor Categorisation and Appropriateness Assessment upon their first login on the Nexo web platform or mobile app. The successful completion of both stages is a regulatory prerequisite for using Nexo’s products and services. You need to successfully complete the Investor Categorisation to proceed with the Appropriateness Assessment. You have the opportunity to retake the Investor Categorisation until you successfully complete it.
Please note that Investor Categorisation is not a one-time requirement—it must be completed annually by all U.K.-based clients to maintain continued access to Nexo’s products and services.

What are the changes?

As of 2024, upon their first login on either the Nexo web platform or mobile app, U.K. residents are prompted to:
  1. Fill Out an Investor Categorisation: During this stage, we ask our users to specify their investor type— high net worth or restricted investor. Additionally, we will gather any necessary information to confirm their investor type, such as the proportion of their assets invested and assets they intend to invest in higher-risk products (like cryptoassets) in relation to their overall net assets. This FCA-established categorisation enables users to take more financially sound investment decisions.  You need to successfully complete the Investor Categorisation to proceed with the Appropriateness Assessment. You have the opportunity to retake the Investor Categorisation until you successfully complete it.
  2. Complete an Appropriateness Assessment: We ask our users to complete a set of multiple-choice questions, focused on general knowledge about crypto trading, as well as specifics on the Borrow and Earn products, to assess users’ awareness of the risks involved in cryptoassets and cryptoasset-related 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?

To maintain uninterrupted access to Nexo’s services, please complete the Investor Categorisation and Appropriateness Assessment by the set deadline, individually communicated to you. 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 asks you to declare your investor profile and, in some cases, asks you to specify the proportion of your assets invested and assets you are willing to invest in higher-risk products depending on your financial well-being.

You will be asked a set of questions and can choose from two categories based on your personal circumstances:

For more information on the investor types, visit our dedicated support article. 

Important: The Investor Categorisation profile must be renewed every year.

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 that 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 happens if I have an Open Credit Line?

If you have an open credit line on the Nexo platform, you must successfully complete the Investor Categorisation, and the Appropriateness Assessment general and Borrow quizzes by the set deadline, individually communicated to you. Failure to do so will result in the automatic repayment of your outstanding loan.

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.