UK Crypto Exchanges FCA Regulations Update

What are the new questionnaires (appropriateness assessments) and self assessment forms (restricted or retail investor statements) that investors need to complete now on CEXs (centralised exchanges) following the UK government and FCA regulations?

What is the 24-hour cooling off period that exchanges must implement?

What is a high net worth investor and what is certified or self certified sophisticated investor, rather than being a retail or restricted investor when investing in cryptocurrencies?

What was the deadline for firms to register with the UK government, if they’re allowed to offer crypto services to UK retail investors such as fiat currency on ramps and off ramps e.g. GBP or British Pound?

What are some of the ways of using DEXs (decentralised exchanges), crypto lending, DeFi to avoid centralized exchanges?

That’s what I cover in this video and include useful links to below.

It has never been more important to educate yourself financially.

Contact me here if you are interested in working with me:
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Check out my previous three UK regulation videos:

1) Which Crypto Exchanges Have Been Approved Following New UK FCA Regulations. Top UK exchanges 2024

2) DeFi – Introduction and Beginner’s Guide to Decentralised Finance

3) The Power Of Crypto Lending – How To Borrow Against Your Crypto – Risks & Rewards

Useful links:
FCA: Financial Services Register:
https://register.fca.org.uk/s/

FCA: Registered Cryptoasset firms:
https://register.fca.org.uk/s/search?predefined=CA

Chapters:
0:00 – Intro
1:14 – FCA Crypto Exchange Deadline
3:30 – Avoid Using Centralised Exchanges
4:30 – Crypto Questionnaire and Self-Assessment Form
5:30 – Appropriateness Assessment
6:32 – 24-Hour Cooling Off Period
6:50 – Restricted Investor Statement
7:45 – High Net Worth Investor
8:32 – Self-Certified Sophisticated Investor

Disclaimer:
The information contained in this video is for informational purposes only. Nothing shall be construed as financial advice. The content is solely the opinions of the speaker who is not a licensed financial advisor. The speaker does not guarantee any particular outcome.

#crypto
#uk
#cryptoregulation
#cryptoexchange

Following my previous video on crypto exchanges in the UK that you can find a link to here and in the description in which I covered how you can find out if an exchange has been approved by the FCA and we looked at some examples of exchanges that already have been I just

Wanted to provide an update on the frankly annoying and confusing questionnaire and self assessment forms that investors need to complete now on exchanges look at what a high net worth or sophisticated investor is rather than being a retail investor and provide a reminder about the deadline for firms to

Register with the UK government if they’re allowed to offer crypto services to UK retail investors and I’d just like to take this opportunity to thank so many of you who’ve liked the video subscribed to the channel and added some really kind and useful comments for everyone so please do like this video

And subscribe to the channel so I can continue to offer more content for for you in future and let’s jump straight in and take a look at what the FCA is imposing on centralized crypto exchanges in the UK so firstly it’s important to note that the deadline for crypto companies to register with the FCA has now passed which was on January the 8th 2024 as you can see here and that means those firms which weren’t registered by this time just thinking about companies like kucoin binance nexo swissborg Etc

Will now be operating illegally according to the UK government if they’re still offering crypto services to UK users but hopefully some of these exchanges will be registered soon for UK users that need Fiat onramps and off-ramps with some looking more promising than others by saying they’re actively working to meet with these new

Regulations so perhaps perhaps it’s only a matter of time before more get added to the list because we’ve seen an increase in exchanges operating in the UK stop accepting new users signing up with them for example nexo and binance to name just two some are restricting access to certain services on their

Exchanges for existing users in the UK while other exchanges have just seemingly shut down for UK users at this time and it’s so fluid and changes day by day it seems so I can’t reasonably provide a definitive list or update for each Exchange in this video because it’s

Likely to change by the time people watch it but I would advise you checking out the comments from my previous video on crypto exchanges which is full of great updates from users of those exchanges in the UK and also please do add in the comments here in this video

If you’ve used a particular exchange and it’s worked now the deadline has passed for crypto companies or if you’ve tried and it’s still unavailable to UK users as it’s truly amazing for others to see these recent comments provide updates and basically just help each other out because please be under No Illusion that

Everything covered in these regulation videos is the UK government through the FCA that originally claimed it would become a crypto Hub controlling the UK crypto Market wherever it can and earning as much money from it as it can through taxes which I’ll actually be looking at again in my next video there

Are some ways to avoid using centralized crypto exchanges for example such as using dexes or decentralized exchanges to swap and trade crypto instead you could borrow against your crypto using defy rather than selling it and then off ramping this into GBP and you could use

Some crypto cards to pay for as much as you can using your crypto and again not needing to sell it but this maybe isn’t right for everyone based on their knowledge experience and risk Toler with it probably being more helpful when it comes to tax and some people need that

Initial onramp from British pounds into crypto to get them started and then need this more regularly if they’re DCA or dollar cost averaging for example but I have done a video providing an introduction to defi for those who’d benefit from it and very recently a video looking at the power and the risks

Of crypto lending in defi links to both videos you can find here and in the description but let’s now look at the questionnaire or appropriateness assessment and restricted investor statement which is a self assessment both of which you should now expect to fill in if you’re using a registered

Centralized Exchange in the UK again which has been imposed by the FCA and I’ve just picked out a few examples that show these starting off with coinbase as you can see here who mentioned the deadline of January the 8th that I mentioned previously that they’ve had to update their exchange and services

Offered for UK users and that there are two tasks that need completing by all UK users firstly the customer categorization declaration and secondly the appropriateness assessment we can see that with revolute also who mentioned that users have to successfully answer some questions or you won’t be able to buy any crypto

Using the exchange and finally we have crypto.com which again mentions these two tasks that users need to complete so let’s start off by looking at the appropriateness assessment because as well as providing risk warnings on their websites which you’ll probably see now often at the top of the screen

Centralized exchanges now need to get you to fill in a questionnaire with the supposed aim as you can see here ensuring the consumer has sufficient knowledge and experience of the specific type of service or crypto assets being promoted and to be honest the questions differ on each platform that I found are

About crypto generally but also about investing and risk management with nothing too complex for for most people with the questions but if you fail it I believe you then have to wait 24 hours to retake the test and you can’t access services on The Exchange in that time so

I would spend a bit of time on the questions just to make sure or try to make sure you get them right and there have already been a lot of reports of people being locked out of their account and having to wait some time to reset the appropriateness assessment which is

Obviously very annoying there also apparently needs to be a 24-hour calling off period for new users in which you can’t use the exchange as soon as you sign up to supposedly give you the time to properly think if you do want to buy that cryptocurrency or not which I personally find quite offensive

But let’s now look at the self assessment declaration or restricted investor statement and you can see an example of one here from from the FCA website which is where you’ll need to detail how much of your net assets that you’ll invest in highrisk Investments such as crypto with there normally being

A question about what percentage you’ve invested this year and how much you intend to invest in the next year or in the future and what they’re looking for here are retail investors who invest no more than 10% of their net assets into crypto because they believe is too risky

Otherwise it is a self assessment and it isn’t clear what happens if you just put 8% or 9% when in fact it’s more like 50% or 90% for example because it will let you continue if you confirm you’ve invested less than 10% of your net assets into crypto the alternative is to

Declare yourself as a high net worth or sophisticated investor which leads us onto the final part of this video which is to ask what is a high net worth or sophistic ated investor because from February 2023 the FCA started revising the Declarations definitions and statements for what high net worth and

Certified or self-certified sophisticated investors are so to label yourself a high net worth investor as you can see here from the FCA you’d need to complete a statement confirming that you earned £100,000 or more and you held net assets Worth £250,000 or more and if you call yourself a self-certified sophisticated

Investor again as you can see here you need to be able to fulfill at least one of the following four criteria but simply put if we go back to crypto now if you qualify as one of these type of investors you wouldn’t have the same restrictions put upon you as a retail or

Restricted investor does and you’d be able to invest in and and access crypto services that most people can’t and that ends this video looking a bit more at the changes and the rules coming into centralized crypto exchanges and as always I’d love to know what you think

In the comments below and if you are interested in more of a tailored approach to your crypto education whether that’s focusing on your crypto Security on defi stuff like yield farming crypto lending Etc and you think you’d benefit from having someone look over your shoulder and guide you on your

Journey I do offer onetoone coaching to those who have the desire and the means to educate themselves further and there are links in the description where you can message me and book in a free video call to see if we’d be a good fit and if you found this content interesting

Please do like the video and subscribe to the channel as it really does help and have a great day