Key takeaways:
- As part of new regulatory requirements by the FCA of the UK, crypto exchange OKX is proposing guidelines for its users based in the country.
- Users also have to answer a second questionnaire that assesses their suitability for cryptocurrency investing.
As part of new regulatory requirements by the Financial Conduct Authority (FCA) of the United Kingdom, cryptocurrency exchange OKX is proposing guidelines for its users based in the country.
The announcement from January 2 states that from the next week, users in the United Kingdom will have to fill out an investor questionnaire to demonstrate their understanding of the risks associated with purchasing and trading digital assets. Users also have to answer a second questionnaire that assesses their suitability for cryptocurrency investing. OKX stated:
“those unable to complete the questionnaires or demonstrate a grasp of the risks will become ineligible to hold an OKX account,”
On January 8, 2024, the FCA will implement new regulations, which cryptocurrency exchanges like Binance and OKX have pledged to follow. In addition to partnering with the regional peer-to-peer lending platform Rebuildingsociety, Binance announced on October 6, 2023, that it had opened a new domain for users in the UK.
However, as the FCA placed more limitations on Rebuildingsociety on October 16, Binance stopped onboarding new customers from the United Kingdom. To meet future FCA rules, OKX, on the other hand, has scaled back its token offering to about 40 assets and added visually striking risk alerts to its interface. OKX made a statement.
“The goal of the FCA is to make sure users are aware of the risks and tradeoffs associated with trading crypto, which takes the industry closer to the norms of traditional finance,”
All digital assets have some level of risk, according to OKX, and it is the responsibility of the businesses that provide them to be transparent about this. As governments around the world place restrictions on offshore exchange operations, the exchange has changed its motto to “trade responsibly.”
The substantial attack that affected the OKX decentralized exchange (DEX) on December 13 caused a $2.7 million loss. Following the alleged exposure of the proxy admin owner’s private key, the breach happened. Attackers were able to utilize the claimTokens function directly because of the exploit, which occurred during the DEX Proxy contract upgrade.
