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- 1 Ahead of the deadline, OKX announces compliance with new crypto asset regulations in the U.K.
- 2 OKX users will become ineligible to hold an account if it does not fulfill the needed requirements.
The cryptocurrency exchange OKX has announced to abide by new sets of crypto regulations in the United Kingdom. After the deadline of 8 January 2024, new local regulations will be implemented regarding the marketing and promotion of cryptocurrency services.
The regulations were set to be implemented in October but the local regulator has extended the deadline. It has given time for companies to manage and avoid the last-minute rush. Many firms have still not adopted their rules.
OKX in a statement on 2 January published, “developing a new user experience that is compliant with the requirements set out in the Financial Promotions Regime.”
The firm added that the new rules presented by the UK’s regulators do not mislead and are fair and clear enough to understand.
The crypto exchange made it clear that from 8th January all the UK OKX users have to comply with two questionnaires – a client categorization and an appropriateness assessment. They clarify this is to make users understand the risk involved with crypto trading.
The statement from the firms included “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.”
OKX repeated its commitment to responsible trading, which incorporates educating customers on doing research, having a trading plan, and also implementing risk management best practices.
Other Firms Who are Complying with New Rules
All the firms who are promoting their services in the UK have to comply with the new sets of regulations. The deadline for implementation is 8th January and the companies that fail to comply with those rules could face enforcement action from the FCA.
MoonPay announced its effort to abide by regulations. A warning was already issued by FCA in September that some companies are neglecting the regulation. The country has also implemented the “Travel Rule” which includes the important confirmation to share collecting, verifying, and sharing crypto asset transfers.
The new set of rules is seen as a challenge for global crypto companies. They have to implement the policy changes as per the U.K. market. The crypto companies now have to implement localized products.
Most companies are accepting the norms of maintaining transparency with customers and promotions. It will enhance trust and protection for customers. However, no company accepted and confirmed compliance with regulations.
Summary
The new set of crypto regulations in the U.K. is being implemented from 8th January. OKX, the crypto exchange has announced it will abide by the rules. The OKX users have to fill in the two requirements of client categorization and an appropriateness assessment.
Some other firms like MoonPay also announced their efforts to comply with new rules while other companies have yet not confirmed their adherence to regulations.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
