Crypto exchange OKX has implemented new rules for users in the United Kingdom in response to new regulatory mandates from the Financial Conduct Authority (FCA).
According to the announcement, users in the United Kingdom will need to undergo an investor questionnaire to demonstrate their comprehension of the risks associated with purchasing and trading digital assets beginning next week. Additionally, users must fulfill a second questionnaire to assess the suitability of investing in cryptocurrencies for them.
“Those unable to complete the questionnaires or demonstrate a grasp of the risks will become ineligible to hold an OKX account,” the exchange wrote.
Many exchanges including OKX and Binance, have committed to adhering to the upcoming Financial Conduct Authority (FCA) regulations scheduled for implementation on January 8, 2024. On October 6, 2023, Binance announced the introduction of a new domain specifically for U.K. users and forged a partnership with the local peer-to-peer lending platform, Rebuildingsociety.
Nevertheless, Binance suspended the registration of new users from the United Kingdom on October 16 following additional restrictions imposed by the FCA on Rebuildingsociety. Conversely, OKX has trimmed its token selection to approximately 40 assets and incorporated attention-grabbing risk warnings on its interface to align with the forthcoming FCA regulations.
“The goal of the FCA is to make sure users are aware of the risks and tradeoffs associated with trading crypto, which takes the industry closer to the norms of traditional finance […] All digital assets come with some degree of risk, and it is the duty of companies who offer them to be clear about it,” OKX commented.
The exchange has adopted a new motto of “trade responsibly,” as regulators worldwide impose limitations on offshore exchanges’ operations. OKX’s disclaimer reads:
Don’t invest unless you’re prepared to lose all the money you invest. Cryptocurrency is a high-risk asset and you should not expect to be protected if something goes wrong.
