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What are Appropriateness Assessments and Customer Categorisation?

  • Updated


 

As of October 8, 2023, the UK Financial Conduct Authority (FCA) has included cryptoassets in its Financial Promotions Regime, classifying them as "high-risk investments." This affects all UK-based CoinJar customers.

 

Where can I learn more?

Understanding the risks with cryptoassets is important, and you can learn more on our website.

 

https://www.coinjar.com/uk/learn/uk-investor-education 

 

What do these changes involve?

There are two key changes to your CoinJar from January 8, 2024:

  • Appropriateness Assessment: CoinJar must assess your understanding of cryptoassets' risks and characteristics. A failure in this assessment will lead to restricted account functionality.

  • Customer Categorisation: You'll need to declare yourself as either a “Restricted” Investor, "High Net Worth" Investor, or a "Certified Sophisticated" Investor, with a requirement to renew this declaration annually.

 

What do I need to do?

To continue trading on CoinJar, please update your CoinJar mobile app to the latest version (v2.98.0 or higher) or open CoinJar web.

 

If you're using CoinJar web, you should see the "Action Required" option to begin this process. If you're using the CoinJar app, on the Home tab, you'll need to tap the grey banner at the bottom of the screen to complete the following tasks:

  1. Appropriateness Assessment:
    Assessing your understanding of cryptoassets' risks and characteristics. A failure in this assessment will lead to restricted account functionality. As per the FCA’s rules, cryptocurrency investors are only allowed 6 attempts at completing the test, with the following cooldown periods:

      • 24 hours between tests after the 2nd failed attempt and
      • 1 year after the 6th failed assessment

  2. Customer Categorisation:
    With a requirement to renew the categorisation annually, you'll need to declare yourself as one of the following:
    • Restricted Investor
    • High Net Worth Investor
    • Certified Sophisticated Investor

 

What impact does this have on my account if I don't complete the above steps, or if my account gets locked out?

From January 8, 2024, your account will be restricted to:

  • send your cryptocurrency out of CoinJar to another wallet
  • sell your cryptocurrency
  • withdraw funds to your linked bank account


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