The crypto exchange OKX will ask UK consumers a series of questions to test their crypto knowledge and risk management. If the users fail the test, they might come under the risk of being ineligible to hold their OKX account.
The UK Financial Conduct Authority’s (FCA) new regulations on crypto-asset advertisements are now in full swing. As a result, numerous crypto firms are either winding down their operations or implementing user experience (UX) changes to align with the new regulatory framework.
OKX Introduces Test For UK Users to Comply With FCA
In a January 2 announcement, OKX conveyed that starting January 8, there would be certain user experience (UX) changes for customers in the United Kingdom. The crypto exchange will test its UK customers to check their knowledge of cryptocurrencies and risk management.
If the customers fail the test, they might no longer be able to trade on OKX.
This aligns with the FCA’s crypto marketing regulations implemented on October 8. The FCA gave crypto firms a deadline of January 8 to comply with the laws. BeInCrypto previously reported that non-compliance with these laws might result in jail time of up to two years.
OKX wrote in its announcement:
“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 come with some degree of risk, and it is the duty of companies who offer them to be clear about it.”
Read more: How Does Regulation Impact Crypto Marketing? A Complete Guide
Coinbase Users Face Challenges With Test
Meanwhile, some UK users have revealed on Reddit that they can no longer trade on Coinbase. Another user confirmed that they failed the test on Coinbase and got a 24-hour waiting period. Ironically, some are even seeking the correct answers to the test on Reddit.
It is worth mentioning that a Reddit user complained about the closure of their Coinbase account. They wrote:
“Heads up to anyone with a coinbase account. Something strange is happening, loads of people including myself have had their accounts closed without any consultation, you CAN access your funds, albeit in an old antiquated method. No support from complaints team other than for legal and security reasons and they would not elaborate any further!”
While some companies comply with the FCA crypto marketing rules, others wind down their operations.
For instance, in September 2022, Bybit announced its decision to suspend operations in the UK. Last month, BeInCrypto reported that Revolut will temporarily suspend crypto services for UK business customers.
The screenshot below shows that as of April 2023, there are approximately 17.66 million crypto users in the UK. If the companies do not comply with FCA regulations, they might miss catering to the UK citizens.
Read more: Crypto Regulation: What Are the Benefits and Drawbacks?
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