Key Insights
- OKX implementing strict new crypto trading rules for UK users from Jan 8
- Investors must pass risk questionnaires or lose account access
- Part of UK regulatory crackdown on crypto sector oversight after 2022 crises
LONDON – Major cryptocurrency exchange OKX is set to impose stricter trading criteria on UK-based users starting next week to adhere to intensified oversight by British regulators.
Investors looking to buy or sell tokens through OKX’s UK platform will need to complete mandatory questionnaires assessing their understanding of crypto risks plus the suitability of such volatile assets within their personal financial plans, the exchange outlined in a Tuesday statement.
Failure to demonstrate adequate risk awareness or justify crypto trading decisions will result in accounts being restricted for British users after Jan. 8, OKX added, though it remains possible barriers could yet be lowered over time.
Will New OKX Rules Choke UK Crypto Activity?
Regulators globally are clamping down on the previously unregulated crypto sector, spooked by severe market contagions last year that obliterated countless amateur investors. Britain’s Financial Conduct Authority (FCA) especially aims to compel more explicit risk warnings.
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OKX insisted it embraces the FCA’s consumer protection goals despite cutting its UK token roster by over half to around 40 coins, including majors like Bitcoin, Ethereum, and Dogecoin. New bold-faced disclaimers like “don’t invest unless prepared to lose all money” now blare across OKX’s UK platform.
Rival exchange Binance initially aimed to keep UK access open via local licensed partners but was forced to cease onboarding new British users in October given additional FCA demands.
Analysts say exchanges balancing regulatory approval with user growth often face difficult trade-offs. Yet OKX asserted enhanced disclosures ultimately mature the asset class, prodding both companies and investors to trade more responsibly.
“It is the duty of firms offering (crypto) to be clear about risks,” OKX said on Monday, arguing all coins inherently carry some degree of risk.