OKX, one of the world’s largest cryptocurrency exchanges by volume, is modifying its user experience for customers in the UK due to new regulations by the country’s Financial Conduct Authority (FCA).
Changes Take Effect in January 2024
The changes will take effect on January 8, 2024, requiring UK customers to complete an investor questionnaire to demonstrate their understanding of risks associated with cryptocurrency trading. A second suitability questionnaire will evaluate if cryptocurrency investments are appropriate for individual users.
Customers Must Understand Crypto Risks
Users who fail to demonstrate sufficient understanding of the risks involved may lose eligibility for an OKX account. The FCA’s rules mandate clear risk warnings, fair and transparent marketing practices, and a 24-hour “cooling-off” period for new crypto investors.
OKX Emphasizes Responsible Trading and Compliance
OKX stresses that the changes are meant to emphasize the importance of responsible trading and regulatory compliance. The exchange underlines the need for customer education around research, trading plans, risk assessment and management. OKX uses the tagline “Trade responsibly” to highlight its focus on responsible trading practices.
Its disclaimer advises that all funds invested in cryptocurrency can potentially be lost since it is a high-risk, non-guaranteed asset.
Other Exchanges Also Making Changes
Other major exchanges like Binance and OKX are making operational changes in light of the upcoming UK crypto regulations. Of the 150 firms invited by the FCA to declare their activities last year, only 24 responded, prompting a final warning from the regulator. Unauthorized firms that continue to promote to UK consumers risk a two-year prison sentence.
For more details on OKX’s regulatory compliance efforts, please visit https://www.okx.com/learn/new-fca-rules