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Nexo to Phase Out Cashback for UK Exchange and Card Transactions as FCA Rules Approach
Bybit said it will suspend its U.K. operations entirely and Paypal said it would temporarily stop crypto purchases.
Updated Oct 6, 2023, 1:45 p.m. Published Oct 6, 2023, 10:49 a.m.
Crypto platform Nexo plans to phase out some of the products that it offers to U.K. clients in response to new rules in the country, a company spokesperson told CoinDesk on Friday.
From Oct. 8 It will be initiating the phase-out of cashback payouts for Nexo Exchange and Nexo Card transactions, as well as referral and affiliate programs.
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Nexo is putting these measures in place to comply with the U.K. Financial Conduct Authority's incoming promotions rules for crypto which require firms to be registered to approve their own ads as well as make changes to their systems - like giving first time buyers at least 24 hours to re-confirm if they want to receive invitations to invest.
"Nexo is committed to our U.K. community, and we regard our compliance responsibilities with the highest priority, reflecting our aim of nurturing a robust crypto ecosystem," a company spokesperson said. "Additionally, our enhanced interface epitomizes our dedication to a consistent user experience in the evolving financial advertising context."
The FCA rules will also take effect by Oct. 8 but companies can apply for a three month extension. Companies have been getting ready and firms like PayPal and Bybit recently said they will stop offering certain crypto services to U.K. clients ahead of the new rules, while Luno has halted some of its U.K. clients from investing in crypto.
Read more: Why Some Crypto Firms Are Suspending Services in the U.K.
Update (0ct. 6 13:35 UTC): Clarifies what Bybit and PayPal are doing in dec.
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Exchange Review - March 2025
CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.
What to know:
Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.
- Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
- Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions.
- Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.
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