My revolut bank account said I must answer some questions before 3 January due to new UK regulations.
So did Kraken, Binance crypto exchanges, it seems
'Due to new UK regulations, we are required to collect additional information about how you classify yourself as an investor, followed by a short test on your investment knowledge.
This is a requirement to continue to use trading services on Kraken after 3 January 2024.'
Apparently you have to get so many correct answers, and if you fail a couple of times they block you for a period.
So, are all these questionnaires the same, and if so, are there any safe bet answers I can use?
Im not in favour of banks etc interrogating me everytime i want to make some trade and deciding whether its in my best interest for me. I'm not a corporate gangster/ tory MP and never gave anyone permission to handle my financial affairs.
If you've nothing to hide, what's the problem with being honest?
are there any safe bet answers I can use?
If you don't know the correct answer, maybe you shouldn't be playing with crypto? If the institution doesn't want you as a customer, do you want them as an FI?
"I'm in it for the memes."
"Diamond hands never selling"
"To the moon LFG"
nothing wrong with honesty, nothing at all.
If the institution doesn’t want you as a customer,
Its the govt thats asking the questions not the exchange.
Decentralized finance implies its not controlled by external forces
relatively decentralized?
After all the recent financial govt scandals,how do people trust them to make financial decisions?
relatively decentralized?
Nope. If it was decentralised you wouldnt have the problem.
After all the recent financial govt scandals,how do people trust them to make financial decisions?
Overall the FCA rules have been fairly effective at protecting individual investors. All that is happening here is crypto investments are having the same rules applied to them as similar investment categories.
I am not sure what your objection is and why you are linking it to government financial scandals?
They're pretty easy questions. Just go for it
You've chosen to use a bank/exchange that falls under the remit of the FCA, which regulates the sector a little to try to prevent criminal activity and hopefully, stop unscrupulous 'trust me bro' organisations going tits up with the contents of your wallet. If you don't like what that entails, I'm sure there must be ways to invest in crypto without such meddling.
After all the recent financial govt scandals,how do people trust them to make financial decisions?
They don't. The banks do.
But back at you, what are your thoughts after the incidents at FTX and HTX?
They are a bunch of basic questions which basically ensure you are aware that you've no financial protection, it's high risk and you shouldn't be investing large amounts of your net worth in such assets.
I don't see the problem, the FCA ensuring exchanges aren't conning you & that investors haven't been conned by others is good for the future stability of the market.
I've done it this evening on Kraken, the answers they are looking for after very obvious.... Do you know it's risky, do you know there's no one to blame but yourself, do you know you could lose every penny you put into crypto and there's nothing you can do about it? It's not complicated!
Its the govt thats asking the questions
No, it's not...
Q1: are you going to do something stupid like invest your pension in meme stocks?
Q2: do you understand that this is riskier than betting Big Baz that you can bang his mum?
Q3: are you going to come crying to us like a little baby when you lose your investment?
They don’t. The banks do.
But back at you, what are your thoughts after the incidents at FTX and HTX?
I thought 'uk regulations' meant 'decided by the govt', not 'decided by the bank'
FTX/HTX- I hate the scams and try not to get conned, try to be responsible for my own actions, hopefully i can make some money,and keep out of the way of trouble. Im not informed enough to comment more.
hopefully the binance ceo's attempts to operate without getting overtaxed and regulated wont make him do a runner
They are a bunch of basic questions which basically ensure you are aware that you’ve no financial protection, it’s high risk and you shouldn’t be investing large amounts of your net worth in such assets.
I get the feeling that if I stated I invested 15% of my assets last year I would not pass these questions
This is turning into too much of an interrogation for me
hopefully the binance ceo’s attempts to operate without getting overtaxed and regulated wont make him do a runner
You mean the one who resigned as part of a guilty plea to breaking US law alongside the fines paid by binance itself.
I did this tonight on Kraken.
It was dead easy. There's a "more information" link before you start the assessment. Just open that in a new tab & you can refer to it, if need be.
Basically all questions want you to answer that you are aware this is all at your risk, you might lose everything and there is no protection for you, from either the exchange or the govt.
If.you aren't aware of that already,.you shouldn't really be investing in Crypto anyway.
It's dead easy & took less than 5 mins.
@IHN. I agree it's not an investment, but one difference is that if Gluebag romped in and you won a ton of money... happy tax-free, days. If your "crypto-horse" came in, then from 24/25 HMRC will be expecting a slice (under CGT rules). On a side note, if your crypto tanks, you can offset as a capital loss.
