New FCA rules going into effect soon
What’s changing?
Due to recent regulations introduced by the UK Financial Conduct Authority ("FCA"), starting 8 January 2024, there will be some important changes to the OKX experience for new and existing retail users in the UK.
In compliance with the upcoming rules, we are developing a new user experience that is compliant with the requirements set out in the Financial Promotions Regime, and we are excited to continue to offer crypto services to UK users.
Starting 8 January 2024, both new and existing UK customers must pass the two questionnaires as follows:
(1) Client categorisation: We will need to classify your investor profile and confirm that you understand the risks involved.
(2) Appropriateness assessment: We’re also required to ask you a series of questions about investing in cryptoassets.
The assessment is designed to test that you have sufficient knowledge and experience of the specific type of service or cryptoassets being promoted, and to ensure you understand the risk.
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.
Our belief in responsible trading
Some of the regulations provided by the FCA concern how exchanges should talk about the products and services they offer. 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. All digital assets come with some degree of risk, and it is the duty of companies who offer them to be clear about it.We're happy to follow these regulations as they fully align with our long-held commitment to responsible trading. We see it as our duty, as one of the world's leading crypto exchanges by trading volume, to educate our customers about it, including:
- the importance of doing your own research
- why it matters to have and stick to a trading plan
- how to measure and mitigate counterparty risk
- how to implement risk management best practices
Some of you will have noticed that most of our videos end with a motto: Trade responsibly. For us, it's more than just a tagline — it's our mission.
If you have any immediate questions or require assistance, please do not hesitate to contact our customer service.
Disclaimer: 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. Cryptocurrency is unregulated in the UK, thus protections such as the Financial Ombudsman or Financial Services Compensation Scheme will not be available. This announcement is provided for informational purposes only. It is not intended to provide: (i) investment advice or an investment recommendation; (ii) an offer or solicitation to buy, sell, or hold digital assets; or (iii) financial, accounting, legal, or tax advice. Digital assets, including stablecoins and NFTs, can involve a high degree of risk, can fluctuate greatly, and can even become worthless. Profits may be subject to capital gains tax. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition. Please consult your legal/tax/investment professional for questions about your specific circumstances.
