This effort is in line with the FCA’s upcoming rules on financial advertising in the UK.
User reports on Twitter indicate that Coinbase has conveyed these needs via email.
Some users have reported receiving an email stating that Coinbase has implemented a new requirement for customers in the UK. A risk acknowledgment form must now be filled out by them.
This effort is in line with the Financial Conduct Authority’s (FCA) upcoming rules on financial advertising in the United Kingdom. With the goal of creating a trading space where customers are better educated about the dangers associated with crypto investments, Coinbase is working towards this goal.
Stringent Compliance Measures
Users in the United Kingdom are required under the new protocol to identify themselves as a certain kind of investor. They must also undergo an Appropriateness Assessment to prove they understand the significant risk associated with investing in cryptocurrencies.
Making sure users have the information to make educated investment decisions is the goal of the evaluation. User reports on Twitter indicate that Coinbase has conveyed these needs via email.
One reason for these modifications is the impending implementation of the Financial Conduct Authority’s financial marketing regulations on January 8. The goal of these rules is to make the ever-changing cryptocurrency market safer for investors.
As a result, a number of exchanges have teamed up with crypto exchange Archax to make sure their financial promotions are in line with the new regulations. This includes OKX and Coinbase.
Other major participants in the market, like Binance and Kraken, have also taken similar steps, showing that the cryptocurrency industry as a whole is moving towards stricter regulatory compliance.
This action complies with legal requirements and is vital in protecting investors by making them more aware of the dangers of crypto trading.