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Tag: UK FCA

  • OKX introduces new UK rules under FCA requirements

    OKX introduces new UK rules under FCA requirements

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    OKX exchange is set to implement new compliance measures for its U.K.-based consumers to comply with the upcoming FCA regulations. 

    The exchange announced today that all users residing in the U.K. must complete a detailed investor questionnaire beginning the following week. This questionnaire assesses their understanding of the risks of purchasing and trading cryptocurrencies. 

    There will also be an additional questionnaire to determine the suitability of crypto investments for each user. OKX emphasized that users who cannot successfully complete these questionnaires or those who fail to demonstrate a clear understanding of the associated risks will not be eligible to maintain an account with the exchange.

    These steps align with the new FCA regulations, set to be enforced starting Jan. 8th. This development comes after regulatory changes across the UK’s cryptocurrency market. Notably, Binance ceased accepting new U.K. users on Oct. 16th, following enhanced restrictions by the FCA and its ban on advertising for unregistered exchanges.

    Meanwhile, OKX proactively adapts to the impending regulations by reducing its digital asset offerings to roughly 40 tokens and incorporating prominent risk warnings within its user interface.

    OKX has recently revamped its security measures to ensure robust user trading. Last week, the exchange announced the delisting of several privacy tokens. This reflects the overall regulatory caution among crypto exchanges across the board. 


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    Mohammad Shahidullah

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  • UK publishes FCA regulations for digital securities sandbox

    UK publishes FCA regulations for digital securities sandbox

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    The U.K. introduced regulation that enables the Financial Conduct Authority and the Bank of England to oversee a digital securities sandbox for testing tokenized securities and distributed ledger technology.

    Effective Jan. 8, this initiative allows the Financial Conduct Authority (FCA) and the Bank of England to oversee a controlled testing environment for tokenized securities. The sandbox concept permits companies to experiment with innovative financial solutions under regulatory supervision.

    The digital securities sandbox (DSS) focus extends beyond tokenized securities, encompassing the exploration of distributed ledger technology to digitize traditional securities.

    With global financial institutions increasingly embracing asset tokenization, U.K. regulators are taking proactive measures to comprehend and regulate this evolving landscape. Firms participating in the DSS will be subject to tailored regulations if existing ones impede progress, as outlined in the accompanying legal documentation.

    This move aligns with the U.K.’s swift utilization of powers granted by the recently enacted Financial Services and Markets Act 2023, establishing a robust regulatory framework for the burgeoning crypto sector.

    By providing a controlled testing ground, the DSS facilitates innovation and aims to empower regulators to adopt rules in response to emerging technologies, reflecting the nation’s forward-looking approach to financial regulation.


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    Bralon Hill

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  • PayPal earns recognition as cryptoasset business in the UK

    PayPal earns recognition as cryptoasset business in the UK

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    According to an Oct. 31 update, PayPal UK Limited secured registration as a cryptoasset business by the Financial Conduct Authority (FCA).

    This makes PayPal the fifth firm to receive the FCA’s crypto registration this year, alongside names like Interactive Brokers, Bitstamp and Komainu.

    One of the 14% approved

    Under PayPal’s listing on the FCA website, the status can now be found as “Registered Since Oct. 31, 2023” for “certain cryptoasset activities.”

    In a statement to a local news site, a spokesperson said that this announcement “enabl[es] the transfer of PayPal’s UK customer accounts to this new UK entity from PayPal Europe on Nov. 1, 2023.”

    Background and registration statistics | Source: FCA website

    Since January 2020, the FCA has received 326 applications, of which only 14% or 43 received registration status. Of this number, only 34 were submitted this year, with a mere 6% or five being classified as registered.

    Forthcoming regulations

    On Oct. 30, the UK government made the official announcement of its commitment to imposing stricter regulations on cryptoasset activities, aligning them with the regulatory framework governing traditional financial services. 

    The government, in response to a consultation initiated earlier this year, revealed its intention to introduce the necessary legislation in 2024 to enact these regulatory changes, as announced by the Treasury.

    The timing of PayPal’s registration couldn’t be more fitting for the firm. 


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    Sarah Jansen

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