May 22, 2024
UK's Crypto Regulation Push: OKX and Others Comply with FCA's Marketing Requirements
Policy & Regulation

UK’s Crypto Regulation Push: OKX and Others Comply with FCA’s Marketing Requirements

As the UK pushes for tighter industry regulation, OKX has become the most recent company to comply with the Financial Conduct Authority’s (FCA) recently imposed crypto marketing requirements.

The FCA issued a harsh warning to cryptocurrency companies last month, highlighting the need for openness and ethical marketing. Additionally, companies were urged to provide “accurate” risk warnings, and the regulator hinted at severe penalties for non-compliance.

Only 24 of the 150 companies the FCA requested to participate in an unspecified study have answered as of September 21. The FCA issued its last warning to various stakeholders as a result of setting off alarm bells.

Unregistered cryptocurrency businesses are already required to stop any illicit financial marketing aimed at UK customers. Such businesses can lawfully convey financial promotions to UK customers as long as their material has the approval of a legitimate body.

If you don’t cooperate, you might get a two-year jail term. To adjust to recently established requirements, OKX has disclosed many adjustments made specifically for its UK retail audience.

These include reducing the number of tokens available in the area from over 100 to only 40 and adding a visible risk alert banner to its website.

On social media platform X, previously known as Twitter, a specific OKX_UK channel has also been created to distribute material under the most recent regulatory requirements in the UK.

In recent weeks, some crypto businesses have cooperated as a result of the FCA’s warnings. The UK-based retail users of Swiss-based Nexo’s services were modified earlier this month when cashback payments for Nexo Exchange and Nexo Card purchases were revoked.

Binance said last week that it has implemented a separate UK domain and worked with the FCA-regulated company Rebuildingsociety.com to guarantee compliance in marketing and communication materials in response to the amended Financial Promotions Regime.

Retail users in the UK will now be sent to www.binance.com/en-GB, which only displays Binance offerings compliant with UK laws.

Others, like ByBit, have opted to “proactively” comply with the rules and avoid any conflicts with the regulator by suspending their UK services for an undetermined length of time.

Similar to this, PayPal hinted at a “temporary pause” on cryptocurrency transactions for its UK users in August. This announcement alluded to relevant regulatory reasons, and PayPal allegedly intends to review this decision at some point in 2019.

“OKX will continue to provide crypto services to UK clients,” the exchange stated in a statement.

“Although some exchanges have decided to no longer offer services in the UK as a result of these new regulations, we’re as motivated as ever.” The exchange concluded.

Image: Wallpapers.com

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