May 29, 2024
Crypto Exchange OKX Aligns with FCA Regulations for UK Investors
Latest Cryptocurrency News

OKX and Binance Adapt to New FCA Guidelines in UK

OKX, a crypto exchange, is implementing regulations for its users in the United Kingdom to comply with the Financial Conduct Authority’s (FCA’s) new guidelines. Starting next week, UK-based users must complete an investor questionnaire to demonstrate their comprehension of the risks associated with purchasing and trading digital assets. Another questionnaire evaluating the suitability of crypto investments for them is also mandatory. Failure to complete these assessments or exhibit an understanding of the risks will result in ineligibility to maintain an OKX account, as stated by OKX.

Both Binance and OKX have committed to adhering to the new FCA regulations scheduled to be enforced on January 8, 2024. Binance initiated a separate domain for UK users on October 6, 2023, and collaborated with the local peer-to-peer lending platform Rebuildingsociety. However, Binance ceased onboarding new UK users on October 16 due to additional restrictions imposed by the FCA on Rebuildingsociety. In contrast, OKX has limited its token offerings to approximately 40 assets and integrated prominent risk warnings into its interface to comply with the forthcoming FCA guidelines.

OKX expressed that the FCA aims to ensure users comprehend the risks and considerations linked with crypto trading, aligning the industry more closely with traditional finance standards. OKX emphasized that all digital assets carry a certain level of risk, and companies offering them have a responsibility to be transparent about these risks.

The exchange has adopted the new slogan ‘trade responsibly’ as regulatory bodies globally impose constraints on the operations of offshore exchanges. The disclaimer on OKX’s platform warns users against investing unless they are willing to accept the potential loss of all invested funds, emphasizing the high-risk nature of cryptocurrencies and the absence of protection in case of issues.

Image by freepik

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