Crypto exchange OKX is introducing rules for its United Kingdom-based users as part of new regulatory requirements by the country’s Financial Conduct Authority (FCA).
According to the Jan. 2 announcement, starting next week, U.K. users will be required to complete an investor questionnaire to prove they understand the risks involved in buying and trading digital assets. In addition, users must complete a second questionnaire evaluating whether investing in crypto is appropriate for them. “Those unable to complete the questionnaires or demonstrate a grasp of the risks will become ineligible to hold an OKX account,” OKX wrote.
Cointelegraph previously reported that exchanges such as Binance and OKX have pledged to comply with new FCA rules set to take effect on Jan. 8, 2024. On Oct. 6, 2023, Binance said it launched a new domain for U.K. users and partnered with the local peer-to-peer lending platform Rebuildingsociety.
However, Binance halted the onboarding of new U.K. users on Oct. 16 after the FCA imposed additional restrictions on Rebuildingsociety. On the other hand, OKX has reduced its token offering to around 40 assets and adopted eye-catching risk warnings on its interface to comply with upcoming 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,” OKX commented. “All digital assets come with some degree of risk, and it is the duty of companies who offer them to be clear about it.” 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.”
Related: OKX crypto exchange to delist privacy tokens in early 2024