Coinbase UK Shows Full Cooperation to FCA’s Stringent Rules

Coinbase UK revamps user requirements in light of FCA’s updated financial promotion rules.

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Created by Gabor Kovacs from DailyCoin
  • Coinbase UK is one of the few exchanges that has decided to play by the FCA’s new rules. 
  • In light of the financial promotion rules, Coinbase has revamped its user requirements. 
  • Coinbase UK is asking its users to fill out a mandatory form to keep using the crypto exchange. 

The Federal Conduct Authority (FCA), the vigilant guardian of the UK’s financial markets, recently intensified its crypto regulation efforts, unfurling stringent laws that initially prompted several major exchanges, including Binance, Paypal, and Bybit, to exit the country. While many platforms scurried away, Coinbase, on the other hand, decided to stay, complying with everything the financial watchdog threw their way. 

Coinbase UK’s New Requirements

In light of the FCA’s updated financial promotion policy, Coinbase UK is asking its users to complete a risk-acknowledgement form to comply with the regulatory changes set to be effective by January 8.

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According to reports, Coinbase’s new risk-acknowledgment form mandates its UK users to specify what type of investor they are classified as and confirm they understand the high-risk nature of crypto investments. 

Coinbase UK’s official email read: 

“You also need to complete a short assessment designed to confirm that you understand the risks associated with investing in crypto assets, which are considered high-risk investments by the FCA. The Appropriateness Assessment is essential for helping us ensure that you’re equipped to make informed investment decisions” 

Coinbase UK said filling out the form is mandatory for users to maintain access to their exchange accounts. The new requirements underscore the UK’s regulatory commitment to mitigating inherent risks associated with the crypto industry.

On the Flipside

  • Coinbase isn’t the only exchange with revamped user requirements. OKX also introduced something similar recently. 
  • Some users reported experiencing difficulties in filling out and submitting the form. 

Why This Matters

The FCA’s new financial promotions rules serve to regulate the crypto landscape for new and existing users in the country. This initiative underscores the regulator’s commitment to safeguarding investors and emphasizes its dedication to fostering growth within the industry.

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Read more about South Korea’s crypto purchase ban:
South Korea Targets Crypto Purchase Ban for Credit Cards

Read more about Cardano’s recent crash:
Cardano (ADA) Slips to $0.49 as Market Flushes $600M

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Insha Zia

Insha Zia is a senior journalist at DailyCoin covering crypto developments, especially in the Cardano ecosystem. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.