On June 8, 2023, in line with UK Government legislation, the FCA rolled out final rules (PS23/6) that mandate crypto firms to assess consumers' risk awareness in crypto investing.
Starting January 8, 2024, both new and existing UK customers must pass two questionnaires to confirm their understanding.
A mandatory 24-hour 'cooling off' period for new UK customers will also be introduced, during which time they’ll be unable to purchase or trade crypto assets.
In line with these new requirements, those unable to complete the questionnaires or demonstrate a grasp of the risks will become ineligible to hold an Uphold account.
There are two questionnaires that all new and existing UK customers must answer:
- The Crypto Risk Assessment questionnaire - designed to test the consumer has sufficient knowledge and experience of the specific type of service or cryptoassets being promoted.
- Self Categorisation questionnaire - designed to identify you as one of 3 types of investor for whom crypto is suitable - as defined by the FCA.
The FCA categorises 3 types of UK investor. Assuming you fall into one of these categories, and you pass the Crypto Risk Assessment questionnaire, your ability to trade on Uphold will not be affected.
- Restricted Investor - This category is expected to apply to the majority of UK customers, i.e. those who haven’t invested more than 10% of their net worth in high risk investments, nor plan to do so in the next 12 months.
- High Net Worth Investor - Customers with an annual income of +£100.000 or +£250.000 of assets.
- Certified Sophisticated Investor - Customers certified within the last 3 years by an authorised firm confirming they understand the risks involved in investing in crypto.
The FCA requires all new and existing UK consumers of crypto-asset products and services to complete both questionnaires.
You should only need to take the Crypto Risk Assessment questionnaire once. However, you may be asked additional questions if you purchase an asset or service introduced to the Uphold platform that fits within a different risk profile.
You will be required to take the self-categorisation questionnaire once a year.
FCA rules require a 24 hour “cooling off” period for all new UK crypto-asset investors, during which they can’t trade crypto assets.
You will be able to deposit fiat to your Uphold account.
Yes.
From January 8th 2024, if you do not fall within one of the three categories defined within the Self Categorisation questionnaire, we’ll be unable to offer you an Uphold Account.
From January 8th 2024, if your answers to the The Crypto Risk Assessment questionnaire demonstrate a lack of understanding of the risks involved in trading crypto-assets, we’ll be unable to offer you an Uphold Account.
If you are unable to answer either questionnaire, we’ll be unable to offer you an Uphold Account.
You may retake the questionnaire if you fail, once immediately. After two failed attempts, you must wait 24 hours before retaking it. This is an FCA requirement.
No. These rules apply only to UK customers.