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.
12/????"Navigating the Financial Promotion Regime for Cryptoassets" with Michael Johnson, @zumopayWatch the recording: https://t.co/cJpzYUeTEg
— Global Blockchain Business Council (GBBC) (@GBBCouncil) January 2, 2024
Binance 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.
This article was written by Damian Chmiel at www.financemagnates.com.
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