UK Cryptocurrency Exchanges Implement Stringent User Assessments Due to New Regulations

UK cryptocurrency users on platforms such as Coinbase, Crypto.com, and Gemini are required to complete risk assessments and financial questionnaires as these exchanges adapt to new regulations governing digital asset advertising. The UK mandates users to declare their investor profile and respond to financial service-related inquiries, with non-compliance resulting in a trading ban, starting Monday.

Firms like Coinbase state that these adjustments are made to align with UK investor protection standards and demonstrate collaboration with local regulators. The changes come as the Financial Services and Markets Act extends regulations to cryptocurrency and stablecoin firms, subjecting them to rules similar to traditional financial services.

Some cryptocurrency companies, including ByBit and Luno, have ceased operations in the UK due to the new laws. The UK's stricter stance on crypto advertising is part of a broader effort to enhance consumer protections and bring digital assets in line with regulatory frameworks governing traditional financial services.

As the UK positions itself as a crypto hub, major exchanges navigate these regulatory challenges. The industry faces increasing scrutiny globally, with companies adjusting operations and user requirements to comply with evolving regulatory landscapes.