OKX will test UK users to comply with FCA promotional rules

cyptouser2 months agoCryptocurrencies News35

Crypto exchange OKX announced on Jan. 2 that it will introduce new requirements to comply with rules from the U.K. Financial Conduct Authority (FCA).

OKX said that, starting on Jan. 8, users in the U.K. will need to complete two questionnaires. The first questionnaire will ensure that users are aware of crypto investment risks and will classify users’ investor profiles. The second will ask a series of questions about crypto investing in order to determine that users have knowledge and experience of certain topics and an understanding of risks.

OKX will require answers from both new users and current users, but only those who are located in the United Kingdom. Users who do not successfully complete the questionnaires will not be able to hold an OKX account.

OKX is among the largest exchanges by daily trading volume. The company reported a 24-hour trading volume of $3.6 billion on Jan. 2.

Policy will comply with FCA rules

OKX explicitly stated that the new process will ensure compliance with the FCA’s Financial Promotions Regime. Though those rules came into effect in October 2023, the FCA allowed certain firms to apply to extend their compliance deadline to Jan. 8. OKX seemingly took advantage of that extension.

OKX’s current announcement also includes a disclaimer based on the FCA’s suggested risk warning. That section tells users not to invest in crypto unless they are prepared to lose their entire investment, says that customers should not expect protection, and says that cryptocurrency is unregulated in the U.K.

The Financial Times reported in October that OKX and its competitor Coinbase had partnered with a firm called Archax to have their promotions approved.

Other firms providing crypto services have instead reduced their U.K. services either on a temporary or indefinite basis. Those that have done so include Binance, PayPal, Bybit, Nicehash, Revolut and Luno. Some firms, such as HTX and KuCoin and Poloniex, have been placed on the FCA’s warning list.

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