OKX to enforce new FCA rules for UK consumers

Crypto exchange OKX is introducing rules to its users in the United Kingdom as part of new regulatory requirements by the country's Financial Conduct Authority (FCA).

Starting next week, UK consumers will be required to complete an investor questionnaire to ensure they understand the risks involved in buying and trading digital assets, according to a January 2 announcement. In addition, users must fill out a second questionnaire that assesses whether investing in crypto is appropriate for them. “Those unable to complete the questionnaires or demonstrate an understanding of the issues will be disqualified from holding 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 January 8, 2024. On October 6, 2023, Binance launched a new domain for UK users and the local peer-to-peer lending platform Reconstruction Association.

However, Binance stopped onboarding new UK users on October 16 after the FCA imposed further restrictions on the rebuilding community. On the other hand, OKX has reduced its token offering to around 40 assets and adopted eye-catching risk warnings to comply with the upcoming FCA regulations on the interface.

“The FCA's aim is to make consumers aware of the risks and transactions associated with crypto trading, bringing the industry closer to traditional financial regulations,” OKX commented. “All digital assets are at some level of risk, and it's incumbent on companies that offer them to be transparent about it.” As regulators around the world impose restrictions on offshore exchanges, the exchange has adopted a new slogan: “Trade Responsibly.” OKX's disclaimer reads:

“Don't invest unless you are prepared to lose all your money. Cryptocurrency is a high-risk asset and you should not expect to be protected if something goes wrong.

Related: OKX crypto exchange to list privacy tokens in early 2024