OKX updates UK marketing for FCA rule compliance
As of last week, unregistered crypto firms must halt any illegal financial promotions targeted at UK consumers or face the consequences
Primakov/mundissima/Shutterstock, modified by Blockworks
OKX has become the latest firm to fall in line with the UK Financial Conduct Authority’s (FCA) recently implemented crypto marketing regulations as the country pushes for greater industry oversight.
Last month, the FCA issued a stern warning to crypto firms, emphasizing the need for transparency and fair marketing. Firms were also reminded to ensure “accurate” risk warnings, with the regulator hinting at serious consequences for non-compliance.
Out of 150 firms asked to take part in an undefined survey from the FCA, only 24 had responded as of Sept. 21, the regulator said last month. That raised alarm bells, prompting the FCA to issue its final warning to various stakeholders.
As of last week, unregistered crypto firms must halt any illegal financial promotions targeted at UK consumers. Such firms can communicate financial promotions legally to UK consumers, provided their content is greenlit by an authorized entity.
Failure to comply could attract up to a two-year prison sentence. In a bid to adapt to freshly imposed standards, OKX has unveiled several modifications tailored for its UK retail clientele.
Those include the narrowing of its tokens on offer across the region from over a hundred to just 40 and the incorporation of a prominent risk advisory banner on its webpage.
A dedicated OKX_UK channel, on social media platform X, formerly known as Twitter, has also been set up in an attempt to disseminate content in line with the UK’s latest regulatory mandates.
The FCA’s warnings have prompted several crypto firms to play ball in recent weeks. Earlier this month, Swiss-based Nexo adjusted their offerings to UK-based retail users by revoking cashback payouts for Nexo Exchange and Nexo Card transactions.
In response to the revised Financial Promotions Regime, Binance said last week it has introduced a dedicated UK domain and collaborated with FCA-regulated firm Rebuildingsociety.com to ensure compliant marketing and communication materials.
UK retail users will now be directed to www.binance.com/en-GB, showcasing only those Binance offerings in line with UK regulations.
Others, such as ByBit, have chosen to suspend their UK services for an indefinite period, aiming to “proactively” align with the regulations and sidestep potential disputes with the regulator.
Similarly, in August, PayPal announced a “temporary pause” of crypto purchases for its UK users, alluding to related regulatory considerations, with plans to reportedly revisit its decision sometime next year.
“OKX will continue to provide crypto services to UK clients,” the exchange wrote in a statement.
“Although some exchanges have decided to no longer offer services in the UK as a result of these new regulations, we’re as motivated as ever.”
Get the news in your inbox. Explore Blockworks newsletters:
- The Breakdown: Decoding crypto and the markets. Daily.
- Empire: Crypto news and analysis to start your day.
- Forward Guidance: The intersection of crypto, macro and policy.
- 0xResearch: Alpha directly in your inbox.
- Lightspeed: All things Solana.
- The Drop: Apps, games, memes and more.
- Supply Shock: Bitcoin, bitcoin, bitcoin.
