Coinbase, a major US-based cryptocurrency exchange, has mandated UK-based users to disclose their investor type and acknowledge the high-risk nature of crypto investments as per the UK financial regulator’s guidelines. This move comes as Coinbase secures a license and aligns with UK laws.
UK residents using Coinbase must complete both tasks to continue accessing their accounts. Coinbase emphasizes the importance of a short assessment designed to confirm users’ understanding of the risks associated with investing in crypto assets, which are considered high-risk investments by the Financial Conduct Authority (FCA).
The measures precede the FCA’s new financial promotion rules set to take effect on January 8, which will also increase risk warnings on exchange platforms. Exchanges including Coinbase and OKX are collaborating with crypto exchange Archax to comply with financial measures. Other exchanges like Binance and Kraken have also implemented similar measures recently.
The UK continues to make headlines with stringent measures on the crypto market. The positive reception of licensing approvals by crypto firms indicates a favorable regulatory environment in the country, aiming to protect citizens from potential crises.
Countries like the United Arab Emirates and Hong Kong are opening doors to crypto companies, turning the crisis into opportunity, while crypto firms aim to gain user trust and interest through these measures.