Digital asset exchange OKX has announced new guidelines for its U.K. customers designed to keep its operations compliant with the Financial Conduct Authority (FCA) requirements.
The exchange confirmed that all new and existing users of its platform in the U.K. must pass two separate questionnaires to determine their suitability to dabble in digital assets.
The first questionnaire, dubbed “client categorization,” will determine whether or not investors understand the risks associated with investing in digital currencies. Upon completion of the first test, users will be required to take an “appropriateness assessment” to ascertain users’ level of understanding of a specific digital asset or service.
OKX’s new requirements for U.K. users will come into effect on January 8, 2024, with the exchange warning that failure to participate in the questionnaires could have dire consequences, including account closures.
“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,” said OKX.
OKX’s internal guidelines come on the heels of the FCA’s decision to introduce a new Financial Promotions Regime, requiring digital asset service providers to rein in the offer of referral bonuses and introduce clear-cut warnings on risks of promotions involving digital assets.
Per the rules, players in the U.K.’s digital asset ecosystem are expected to provide a balanced view of information while disclosing all costs and fees associated with the investment. Firms are also barred from using terms such as “secure,” “protected,” or “guaranteed” in their promotions.
“All digital assets come with some degree of risk, and it is the duty of companies who offer them to be clear about it,” read OKX’s announcement. “We’re happy to follow these regulations as they fully align with our long-held commitment to responsible trading.”
OKX wants users to ‘trade responsible’
Not content with introducing questionnaires to residents, OKX has announced the creation of a new X (formerly Twitter) account for U.K. users. The exchange has gone ahead with lessons for users, focusing on the importance of doing personal research before investing, the benefits of a trading plan, and risk management best practices.
The company’s motto, “Trade Responsible,” has become its primary mission, underscoring its determination to protect consumers from the risks typically associated with digital assets. Furthermore, OKX’s website features glaring warnings on risks stemming from investing in digital assets after reducing the number of assets on its platform to just above 40 for U.K. users.
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