Coinbase UK has recently implemented a new requirement for its users to complete a risk-acknowledgment form in order to comply with the Financial Conduct Authority’s (FCA) latest financial promotions regulations. According to emails obtained by CryptoSlate, users are now being asked to identify their investor type and complete an assessment that acknowledges the high-risk nature of cryptocurrency investments as defined by the FCA.
This step is being taken to ensure that users are well-informed and equipped to make investment decisions in the cryptocurrency market. Known as the Appropriateness Assessment, this short evaluation is designed to confirm users’ understanding of the risks associated with investing in crypto assets, which are considered high-risk investments by the FCA.
Compliance Efforts in the Crypto Industry
Coinbase is not the only crypto exchange taking measures to comply with local laws in the UK. OKX has also recently introduced a similar process for its users. These efforts align with the regulatory endeavors of the UK government in safeguarding individuals within its jurisdiction from the inherent risks associated with the emerging crypto industry.
However, complying with these regulations has proven to be a challenge for some crypto-related firms. Binance, Bybit, Nicehash, Revolut, and Luno are a few examples of companies that have been required to discontinue their services in the country due to their inability to meet the regulatory requirements imposed by the FCA.
User Challenges and Dissatisfaction
Users of Coinbase have encountered various challenges throughout the process of completing the risk-acknowledgment form and have expressed their dissatisfaction on social media platforms. A common complaint is the difficulty in finding and submitting the form, as some users have reported its unavailability on the app or experienced browser malfunctions.
In comparison to other exchanges, Coinbase users have found the process to be inconvenient. Users have voiced their frustration, describing the situation as a joke and contrasting it unfavorably with other platforms that have implemented similar compliance measures more seamlessly.
As Coinbase UK and other crypto exchanges strive to comply with the new FCA regulations, users are being required to complete a risk-acknowledgment form and assessment to confirm their understanding of the high-risk nature of cryptocurrency investments. Despite the regulatory efforts to protect individuals from the risks associated with the crypto industry, user experiences have shown that there are areas for improvement in terms of accessibility and functionality of the compliance process.
It is crucial for crypto exchanges to address these challenges and ensure that their users can easily fulfill the regulatory requirements. By doing so, exchanges can continue to operate within the UK market and provide users with a smooth and compliant cryptocurrency trading experience.