The UK Financial Conduct Authority (FCA) is making changes to their Financial Promotions regime which means the introduction of the following changes for our consumer website (coinbase.com) and the Coinbase app in the UK:
• You’ll see a variety of risk warnings throughout the Coinbase website and app.
• Coinbase will no longer offer incentive activities in relation to engagement in crypto trading activities.
• Coinbase will no longer offer Learning Rewards.
• Content on the Coinbase website and app as well as our marketing materials beyond our website and app (e.g. via email, social media) will change.
FCA requirements
The Financial Promotions regime is a set of FCA-mandated rules that firms marketing or offering cryptoasset services must comply with. UK users may encounter specific risk warnings on Coinbase's website and app.
Participation in incentives and promotions
Coinbase is prohibited from offering monetary or non-monetary incentives related to cryptoasset trading under the Financial Promotion Regime. Learning rewards are not available in the UK.
Product access
Access to certain Coinbase products may be restricted if onboarding requirements are incomplete.
To buy or sell cryptoassets, you’ll need to complete:
Client Categorisation
Appropriateness Assessment
24-hour cool-off period (onboarding users only)
Onboarding requirements are prescribed by the FCA and cannot be opted out of or accelerated.
Client Categorisation (applicable to new and existing users)
Client Categorisation is a step of the Financial Promotions regime where customers self-select into one of two FCA-defined categories:
Restricted Investor: A Restricted Investor has limited investment exposure, not investing more than 10% in high-risk assets in the past 12 months and not planning to invest more than 10% of their net assets into high risk assets in the next 12 months.*
High Net Worth Investor: Earns £100,000+ per year or has net assets of £250,000+.*
The Financial Promotion regime requires all users to self-select into one of the two categories, and revalidate their categorisation every 12 months.
Users who registered prior to 8 January 2024, but have not gone through this categorisation and the appropriateness assessment can't buy or trade crypto assets. However, they can still sell crypto for cash, send crypto to an external wallet, or withdraw cash funds anytime, as well as explore products and browse crypto prices and news.
* Net assets do not include primary residence, pension (or any pension withdrawals) or any rights under qualifying contracts of insurance. High-risk investments include peer-to-peer loans, investment-based crowdfunding, units in a long-term asset fund, unlisted debt and equity (such as in companies not listed on an exchange like the London Stock Exchange), and cryptoassets.
24-hour cooling-off period (new users only)
To comply with the Financial Promotion regime, new users who sign up after 8 January 2024 must wait 24 hours before trading with Coinbase. This period can't be disabled or expedited. During this time, users can complete onboarding, browse prices, and explore some products, but cannot buy or trade.
Appropriateness Assessment
The Appropriateness Assessment is a short multiple-choice test about Coinbase’s cryptoasset trading products. It helps ensure these products are suitable for customers. As per the FCA’s Financial Promotions regime, only customers who pass this test can buy or trade cryptoassets. If you fail, you can retake it once immediately. After two failed attempts, you must wait 24 hours before retaking it. This is an FCA requirement. To learn more about cryptoassets, please read our guide.
Risk warnings
You’ll see the following FCA-mandated static, non-dismissable risk warning at the top of most pages on the Coinbase website and app: “Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.”
You’ll also see new risk disclosures and data source disclaimers related to performance, market data, and asset category specific risks across our website and app.