OKX is implementing regulations for its users in the United Kingdom in response to new regulatory mandates from that nation’s Financial Conduct Authority (FCA).
Beginning the following week, U.K. users will be required to complete an investor questionnaire to demonstrate they comprehend the risks associated with purchasing and trading digital assets, per the announcement made on January 2.
Moreover, users must respond to a second survey that assesses the suitability of cryptocurrency investment for them. “Those unable to complete the questionnaires or demonstrate a grasp of the risks will become ineligible to hold an OKX account,” the company stated.
Before January 8, 2024, exchanges, including Binance and OKX, have made commitments to adhere to recently established FCA regulations. On October 6, 2023, Binance announced that it had partnered with the local peer-to-peer lending platform Rebuildingsociety and introduced a new domain for U.K. users.
On October 16, however, Binance ceased enrolling new users from the United Kingdom in response to additional restrictions imposed by the FCA on Rebuildingsociety.
“The goal of the FCA is to make sure users are aware of the risks and tradeoffs associated with trading crypto, which takes the industry closer to the norms of traditional finance,” according to OKX. “All digital assets come with some degree of risk, and it is the duty of companies who offer them to be clear about it.”
As global regulators impose restrictions on the operations of offshore exchanges, the exchange has embraced the new motto “trade responsibly.” The disclaimer for OKX is “
“Don’t invest unless you’re prepared to lose all the money you invest. Cryptocurrency is a high-risk asset and you should not expect to be protected if something goes wrong.”