In October 2023, the UK Financial Conduct Authority (FCA) introduced an extension to the Financial Promotions regime (FinProm Regime), impacting cryptoasset firms like Bitpanda. These regulatory changes require all firms marketing cryptoassets to UK consumers, regardless of their location or regulatory status, to make specific adjustments to their websites, apps, and marketing materials.
What Does This Mean for Bitpanda's Existing UK Users?
Bitpanda users in the UK can expect to see the following changes:
New Risk Warnings:
Bitpanda will implement new risk warnings to ensure users have a clear understanding of the risks associated with cryptoasset trading.
Removal of Incentives:
Any incentives related to engagement in cryptoasset trading activities will be removed to comply with the updated regulations.
Introduction of the Appropriateness Assessment:
Bitpanda will introduce an "Appropriateness Assessment," which is a brief, multiple-choice test designed to assess users' knowledge and comprehension of Bitpanda's cryptoasset products and the risks associated with the cryptoasset market. This assessment aims to ensure that each UK user has access only to products and services that are suitable for their level of understanding.
The Appropriateness Assessment Details
The Appropriateness Assessment is a crucial component of the regulatory changes. Here are some key details:
Purpose: The assessment helps ensure that Bitpanda's UK users have a sufficient understanding of cryptoasset products and market risks.
Access Restriction: Only users who pass the Appropriateness Assessment will be permitted to buy or trade cryptoassets.
Please note that failure to meet the Appropriateness Assessment requirements (e.g. by providing any incorrect responses) will result in a minimum 24-hour suspension of your trading functionality, as mandated by the FCA. You can retake the assessment every 24 hours by logging into your account. Further failures will lead to additional 24-hour suspensions. Once you successfully pass the assessment, your access to trading functionality will be restored, subject to other applicable requirements, such as customer verification.
Important for new UK users
Bitpanda is currently not onboarding new UK users. However, should registration for new UK users reopen in the future, they will also be subject to these regulatory changes. New users will receive a personalized risk warning, as mandated by the FinProm Regime, in addition to other measures applied to existing users.
In conclusion, these regulatory changes aim to enhance transparency and user protection within the cryptoasset market. Bitpanda is committed to complying with the FCA's requirements and ensuring the safety and suitability of its services for all UK users. If you have any questions or need further clarification, please reach out to our support team for assistance.