In this article
Coinbase, Crypto.com, Gemini and other cryptocurrency exchanges are warning users in the U.K. that they'll need to start filling out risk assessments and investment questionnaires aimed at testing their financial knowledge.
It comes ahead of tough new rules on the advertising of digital asset products in the country.
The firms have told users in Britain that, starting Jan. 8, they will be required to complete a declaration about what type of investor they are, and respond to a questionnaire asking questions on a range of aspects of financial services and regulation to continue using their respective platforms.
In the customer declaration section, users are asked to select their investor profile: either high-net-worth individual earning above £100,000 (roughly $126,700) annually or with a net worth of more than £250,000, or a «restricted investor» that won't invest more than 10% of their assets. Otherwise, they cannot trade crypto.
The financial questionnaires, which vary from exchange to exchange, require users to respond to numerous questions about what range of products the firms offer, the volatile nature of crypto asset prices, and the treatment of crypto as a product by financial regulators.
If a customer fails to complete the tasks successfully, they will be prevented from trading with their crypto account.
Since the passing of the Financial Services and Markets Act, a major package of financial services reforms in the U.K., firms that offer crypto and a certain type of digital currency called stablecoins are now covered by the law and must adhere to the same rules as those that govern traditional financial services.
Since Oct. 8, firms seeking to promote cryptoassets in the U.K. to retail customers
Read more on cnbc.com