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The United States-based cryptocurrency exchange Coinbase has requested its United Kingdom-based users to report what type of investors they are and to fill out a form confirming their understanding of the high-risk nature of crypto investments under the guidelines of the UK’s financial regulator. Coinbase, which recently became eligible for a license, decided to take this step in response to UK laws.
Coinbase’s Noteworthy Move
According to a statement by the cryptocurrency exchange Coinbase, users residing in the United Kingdom must complete both tasks to continue using their Coinbase accounts. Coinbase provided the following statement:
“Additionally, you 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 Financial Conduct Authority (FCA). The Suitability Assessment is very important to ensure that you are equipped to make informed investment decisions.”
The measures come before the Financial Conduct Authority’s financial promotion rules, which will take effect on January 8th. The rules will also require exchanges to provide more risk warnings on their platforms. Exchanges, including Coinbase and OKX, are working with the cryptocurrency exchange Archax to get approval for the financial measures. Other cryptocurrency exchanges such as Binance and Kraken have also recently implemented similar measures.
Cryptocurrency Market and Legal Regulations
United Kingdom continues to make headlines with its strict measures towards the cryptocurrency market. The country’s recent approval of many institutions’ license applications has been positively received by crypto companies. With these measures, governments aim to fully protect their citizens’ rights in the event of a potential crisis.
During these developments, countries like the United Arab Emirates and Hong Kong have opened their doors wide to crypto companies, hosting significant initiatives to turn the crisis into an opportunity. However, crypto companies want to gain users’ interest and trust through these measures.
