OKX Implements New Rules for UK Users in Compliance with FCA Regulations

cryptonews.com:

The cryptocurrency exchange OKX is introducing rules for its United Kingdom-based users in response to recent regulations introduced by the UK Financial Conduct Authority (FCA).

On January 2, OKX announced changes to its user experience for new and existing retail users in the United Kingdom (UK) in response to newly implemented crypto marketing regulations as the country pushes for greater industry oversight. The changes will be effective on January 8, 2024.

Starting next week, both new and existing UK customers will be required to complete an investor questionnaire to demonstrate their understanding of the risks associated with buying and trading digital assets.

Additionally, users must undergo a second questionnaire to evaluate whether investing in cryptocurrencies is suitable for them. Those who are unable to complete the questionnaires or demonstrate a sufficient understanding of the risks will no longer be eligible to hold an OKX account.

These changes are in response to the FCA’s recent efforts to promote responsible trading and ensure users are aware of the risks associated with crypto trading.

In October, the FCA implemented some new rules pertaining to digital assets, which require crypto firms to register with the financial regulator and have their marketing materials approved by an FCA-authorized firm.

Key updates from the FCA’s rule include exchanges providing clear warnings to customers about the risks associated with crypto investments. Also, the marketing materials must be fair, transparent, and not misleading. Additionally, a 24-hour cooling-off period for new customers is required.

In response to these, the exchange further emphasizes the importance of making users aware of the risks and tradeoffs associated