OKX Implements New FCA Regulations for UK Users; Encourages Responsible Trading
Summary:
OKX is implementing new rules for UK users in line with regulatory guidelines from the UK's Financial Conduct Authority (FCA). From next week, users will be required to complete questionnaires to demonstrate their understanding of the risks associated with digital asset investment. Those who fail to complete these or show comprehension of the risks will lose account access. The changes follow moves by exchanges such as Binance and OKX to comply with FCA regulations due to start in 2024. Increased global restrictions on international exchanges have led to OKX adopting the slogan, "trade responsibly.
OKX, the renowned crypto exchange, is implementing fresh regulations for its customers in the UK. This move shadows the recent mandate by the Financial Conduct Authority (FCA), UK's finance watchdog. As per the company announcement on January 2, users based in the UK will, from the next week onward, have to fill out an investor questionnaire to establish their familiarity with the risks connected with purchasing and dealing in digital currencies. Besides, these users will have to fill another questionnaire meant to ascertain whether cryptocurrency investments suit their financial goals. If some users cannot fulfill these preliminaries or reveal their understanding of the associated risks, they will no longer qualify to maintain their accounts with OKX, the company stated. Earlier, Cointelegraph had reported that multiple exchanges, including Binance and OKX, had committed to following the FCA's new regulations initiating on January 8, 2024. Binance had unveiled a fresh domain for its UK users on October 6, 2023, collaborating with the local peer-to-peer lending enterprise, Rebuildingsociety. However, Binance later suspended enrolling new users from the UK on October 16, due to extra restrictions enforced by the FCA on Rebuildingsociety. Meanwhile, OKX cut down its token offerings to nearly 40 assets and incorporated conspicuous risk warnings on its user interface, keeping in line with the upcoming FCA guidelines. As per OKX's statement, the FCA aims to ensure that crypto traders comprehend the risks and compromises involved with cryptocurrency trading, pushing the industry closer to conventional financial norms. OKX stressed, "Crypto investments carry their own set of risks, and it's incumbent on the offering firms to make this clear to their customers." Coinciding with increasing global restrictions on overseas exchanges, the company recently adopted a new slogan – "trade responsibly." Finally, the advisory by OKX requests users, "Only invest if you're ready to risk losing the entire invested amount. Cryptocurrency is a highly risky asset and there shouldn't be any anticipations of being safeguarded if things go south." Similar news: OKX was preparing to remove privacy tokens in early 2024.
Published At
1/2/2024 8:25:00 PM
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