Crypto Firms Across the UK Begin to Roll Out Risk Assesments Ahead of Monday Deadline
A number of cryptocurrency firms operating in the U.K. are rolling risk assessments ahead of new rules set out by the Financial Conduct Authority (FCA) expected to begin on Monday, January 8th.
So far, key crypto players such as Coinbase, Gemini, and OKX have all implemented their own financial surveys in the hopes of adhering to the new FCA guidelines.
In part, the questionnaires attempt to gauge investment information regarding the user’s own financial background and the extent to which they understand the risk of volatility when investing in cryptocurrency.
“The assessment is designed to test that you have sufficient knowledge and experience of the specific type of service or crypto assets being promoted, and to ensure you understand the risk,” read a January 2024 statement from OKX. “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 FCA took stringent action against any potential illicit activity in the crypto industry in 2023, setting forth a sweeping set of rules that banned certain crypto firms from providing certain incentive offerings like refer-a-friend bonuses and mandating “clear, fair and not misleading” across crypto asset firms.
“From this October, crypto firms must market to UK consumers clearly, fairly and honestly,” said Director of Consumer Investments for the FCA, Lucy Castledine, in a July 2023 statement. “And they must provide risk warnings people understand.”
Following the news, OKX reduced their token offerings to around 40 assets and put in place several warnings that warn customers of the “high-risk” nature of crypto investing, with one warning reading customers should not “invest
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