The cryptocurrency
exchange OKX has announced it is working to comply with new crypto asset
regulations in the United Kingdom that go into effect in a few days, on 8
January 2024. From that date, new local regulations will be enacted regarding
the marketing and promotion of cryptocurrency services.
Initially scheduled to take effect in October, the local regulator extended the
deadline, granting companies more time. OKX managed to comply at the last minute, but many other firms have not yet adapted their rules.
OKX Announces Compliance
with New UK Crypto Rules ahead of Deadline
In a
statement published on 2 January, OKX said that it is “developing a new user
experience that is compliant with the requirements set out in the Financial
Promotions Regime.” The new rules, enacted by the UK’s Financial Conduct
Authority (FCA), aim to ensure crypto promotions are fair, clear, and not
misleading.
Starting 8
January, all new and existing UK OKX users will have to complete two
questionnaires: a client categorization and an appropriateness assessment. The
goal is to confirm that users understand the risks involved with crypto trading.
“In
line with these new requirements, those unable to complete the questionnaires
or demonstrate a grasp of the risks will become ineligible to hold an OKX
account,” the statement said.
OKX also
reiterated its commitment to responsible trading, including educating customers
on doing research, having a trading plan, and implementing risk management best
practices.
— Global Blockchain Business Council (GBBC) (@GBBCouncil) January 2, 2024Binance and MoonPay to
Comply. What about the Others?
The deadline of 8
January applies to all crypto firms promoting their services in the
UK. Major crypto companies like Binance and MoonPay have additionally announced efforts
to comply. Crypto companies that fail to follow the new rules could face
enforcement action from the FCA.
In
September, the FCA warned that some companies have neglected more
comprehensive aspects of the regulation. Meanwhile, the country implemented the
“Travel Rule,” which concerns collecting, verifying, and sharing
crucial information related to crypto asset transfers.
The new
regulations have posed challenges for global crypto companies that must now
implement localized product and policy changes specifically for the UK market. Although
most firms have expressed support for the goals of protecting consumers and
ensuring transparent promotions, they have not yet confirmed compliance with
the regulations that will take effect from next Monday.
The cryptocurrency
exchange OKX has announced it is working to comply with new crypto asset
regulations in the United Kingdom that go into effect in a few days, on 8
January 2024. From that date, new local regulations will be enacted regarding
the marketing and promotion of cryptocurrency services.
Initially scheduled to take effect in October, the local regulator extended the
deadline, granting companies more time. OKX managed to comply at the last minute, but many other firms have not yet adapted their rules.
OKX Announces Compliance
with New UK Crypto Rules ahead of Deadline
In a
statement published on 2 January, OKX said that it is “developing a new user
experience that is compliant with the requirements set out in the Financial
Promotions Regime.” The new rules, enacted by the UK’s Financial Conduct
Authority (FCA), aim to ensure crypto promotions are fair, clear, and not
misleading.
Starting 8
January, all new and existing UK OKX users will have to complete two
questionnaires: a client categorization and an appropriateness assessment. The
goal is to confirm that users understand the risks involved with crypto trading.
“In
line with these new requirements, those unable to complete the questionnaires
or demonstrate a grasp of the risks will become ineligible to hold an OKX
account,” the statement said.
OKX also
reiterated its commitment to responsible trading, including educating customers
on doing research, having a trading plan, and implementing risk management best
practices.
— Global Blockchain Business Council (GBBC) (@GBBCouncil) January 2, 2024Binance and MoonPay to
Comply. What about the Others?
The deadline of 8
January applies to all crypto firms promoting their services in the
UK. Major crypto companies like Binance and MoonPay have additionally announced efforts
to comply. Crypto companies that fail to follow the new rules could face
enforcement action from the FCA.
In
September, the FCA warned that some companies have neglected more
comprehensive aspects of the regulation. Meanwhile, the country implemented the
“Travel Rule,” which concerns collecting, verifying, and sharing
crucial information related to crypto asset transfers.
The new
regulations have posed challenges for global crypto companies that must now
implement localized product and policy changes specifically for the UK market.
