- OKX will introduce new regulatory measures for UK users in compliance with FCA requirements, including mandatory risk-awareness questionnaires, starting January 8, 2024.
- The move aims to align cryptocurrency trading with traditional finance standards, enhancing user awareness of the risks associated with digital assets.
- OKX emphasizes responsible trading and customer education, limiting its token offerings and stressing the importance of informed decision-making in crypto investments.
Crypto exchange OKX is introducing new rules for its United Kingdom 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, trading, and holding 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 UK users and partnered with the local peer-to-peer lending platform Rebuildingsociety.
However, Binance halted the onboarding of new UK 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.”
OKX’s compliance with the FCA’s new rules is a testament to its dedication to responsible trading practices and its role in educating users about the critical aspects of crypto trading.
The exchange’s efforts to align with regulatory requirements while emphasizing the importance of customer education in risk management and trading best practices mark a significant step in the maturation of the crypto industry.