Completing risk-acknowledgment forms has become a requirement for users of Coinbase UK, as the company strives to comply with the Financial Conduct Authority’s (FCA) new financial promotions regulations. However, this process has posed several challenges for users, leading to frustrations and dissatisfaction.
Coinbase UK has notified its users via emails that they must complete a risk-acknowledgment form to adhere to the FCA’s regulations, which will come into effect on January 8th. The purpose of this form is to identify the investor type of users and ensure they understand the high-risk nature of cryptocurrency investments as outlined by the FCA. In an excerpt from the email, Coinbase stated, “The Appropriateness Assessment is essential for helping us ensure that you’re equipped to make informed investment decisions.”
Coinbase’s efforts to comply with local laws align with the broader regulatory initiatives in the United Kingdom aimed at protecting individuals from the inherent risks associated with the cryptocurrency industry. Other crypto exchanges, such as OKX, have also implemented similar measures to meet regulatory requirements. The UK regulatory landscape has forced numerous crypto-related firms, including Binance, Bybit, Nicehash, Revolut, and Luno, to withdraw their services from the country due to their inability to comply with the laws.
While Coinbase’s compliance efforts are commendable, users have faced various challenges throughout the process and expressed their dissatisfaction on social media platforms. Many users reported difficulties in filling and submitting the risk-acknowledgment form, highlighting its unavailability on both the Coinbase app and browser versions. Additionally, several users experienced technical malfunctions while attempting to complete the form.
The frustrations expressed by Coinbase UK users regarding the completion of the risk-acknowledgment form have been significant. One user expressed their discontent by labeling the situation as inconvenient and unfavorably comparing Coinbase to other exchanges. The user wrote, “You are telling us to complete the UK FCA declarations, Task 1 & 2, but they are nowhere to be found on the app or logging in on a computer, what a joke!”
Coinbase UK’s implementation of risk-acknowledgment forms is a necessary step towards complying with the FCA’s new financial promotions regulations. However, this process has faced criticism from users who have encountered challenges and expressed their dissatisfaction with the lack of availability and technical malfunctions. As Coinbase continues to refine its compliance procedures, it is crucial for the company to address the concerns of its users to ensure a smooth and efficient user experience.