Crypto exchange OKX is rolling out new guidelines for its users based in the United Kingdom, aligning with the regulatory requirements set by the country’s Financial Conduct Authority (FCA). The move comes as part of the exchange’s commitment to comply with the latest regulations in the digital asset space.
Starting next week, U.K. users on the OKX platform will be mandated to complete an investor questionnaire, demonstrating their understanding of the inherent risks associated with buying and trading digital assets. In a Jan. 2 announcement, OKX emphasized the importance of users acknowledging and comprehending the risks involved in the crypto market.
In addition to the investor questionnaire, users are required to complete a second questionnaire evaluating whether investing in cryptocurrencies aligns with their financial circumstances and risk tolerance. Failure to complete these assessments or demonstrate a sufficient understanding of the risks will result in the user becoming ineligible to maintain an OKX account, as stated by the exchange.
Compliance Across the Industry
OKX is not alone in adapting to the evolving regulatory landscape. Earlier reports from Cointelegraph highlighted that major exchanges like Binance and OKX are committed to adhering to the new FCA rules scheduled to be implemented on Jan. 8, 2024.
On Oct. 6, 2023, Binance took steps to comply with the regulations by launching a new domain specifically for U.K. users and forming a partnership with the local peer-to-peer lending platform Rebuildingsociety. However, Binance paused the onboarding of new U.K. users on Oct. 16, following additional restrictions imposed by the FCA on Rebuildingsociety.
OKX’s Proactive Measures
In response to the upcoming FCA regulations, OKX has made strategic adjustments, including reducing its token offering to approximately 40 assets. Furthermore, the exchange has implemented eye-catching risk warnings on its interface, aiming to enhance user awareness and compliance with the regulatory framework.
The FCA’s objective, as highlighted by the exchange, is to ensure that users are well-informed about the risks and tradeoffs associated with crypto trading, bringing the industry closer to the established norms of traditional finance. As regulatory bodies worldwide impose limitations on offshore exchanges’ operations, OKX has adopted a new motto: “trade responsibly.”
In line with this commitment, the exchange disclaimer emphasizes the high-risk nature of cryptocurrency investments, cautioning users not to invest unless they are prepared to accept the possibility of losing all invested funds.