<p>Freddie New of Bitcoin Policy UK tweeted about this <a href="https://twitter.com/freddienew/status/1743644557441470496" rel="nofollow noreferrer">here</a> and that tweet thread goes through some of the (enforced) user disclosure experience of KYC exchanges in the UK.</p>
<p>According to the regulation if you are a <strong>restricted investor</strong> and you invested more than 10 percent of your net assets in high risk investments (e.g. Bitcoin) <strong>last year</strong> or intend to invest more than 10 percent of your net assets next year you can no longer use KYC exchanges such as Coincorner and Coinbase. Theoretically you could lie and continue to use those exchanges but if you can afford it get legal advice on the implications of lying on customer FCA disclosures.</p>
<p>There are P2P (non KYC) exchanges such as Peach Bitcoin, Hodl Hodl and Bisq but they have a different risk profile to established KYC exchanges that have been around for a decade both in terms of the parties you are buying from (or selling to) and potentially the security of the software.</p>
<p>The regulation is absolutely scandalous (in my opinion, trying to leave personal opinion out of this answer) but that's the country you are living in today I'm afraid.</p>

CC BY-SA 4.0
2024-03-23T17:46:17.803Z
Thanks thats a useful post. Looks like Peer-to-Peer is the way forward.
I can't vouch for these, but they were mentioned in the post you linked to.
https://bisq.network
https://peachbitcoin.com
https://hodlhodl.com
Roger B
CC BY-SA 4.0
2024-03-23T12:15:22.113Z
2024-03-23T12:15:22.113Z
Michael Folkson
<p>I am a small retail buyer/holder of Bitcoin.</p>
<p>In June 2023 the FCA released this Policy Statement <a href="https://www.fca.org.uk/publication/policy/ps23-6.pdf" rel="nofollow noreferrer">https://www.fca.org.uk/publication/policy/ps23-6.pdf</a></p>
<p>My question relates to the 'client categorisation requirements'.</p>
<p>Recently, on a platform I use to buy crypto, I had to answer some questions so that they could categorise me (according to the above-mentioned policy it would appear) as either a 'High Net Worth Investor' OR a 'Restricted Investor'.</p>
<p>From what I understand:</p>
<p>A High Net Worth Investor earns £100,000 or more per year, or has net assets worth £250,000 or more.</p>
<p>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.</p>
<p>*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.</p>
<p>And if I am not in either of these 2 categories, then I cannot buy or trade crypto assets on the platform (but can still sell crypto for cash, withdraw cash, or send crypto to an external wallet).</p>
<p>I am certainly not a High Net worth individual.</p>
<p>So if have no assets other than Bitcoin I may no longer buy Bitcoin?</p>
<p>This seems rather draconian. Who are they to tell me what proportion of Bitcoin is acceptable? (Oh, but if you are already rich, then its fine. More regulation to make sure 'the rich get richer and the poor get poorer'. I can't help but feel this is more to protect traditional investment markets than to protect me. I know the risks of Bitcoin and I am prepared to take them.)</p>
<p>Any advice or comments on this would be appreciated.</p>

<legal><financial-regulations><united-kingdom>
Do the FCA rules on Financial Promotion for cryptoassets prohibit me buying Bitcoin?
Roger B
# Do the FCA rules on Financial Promotion for cryptoassets prohibit me buying Bitcoin?

(Asked by: username_0 on 2024-03-23)

I am a small retail buyer/holder of Bitcoin.

In June 2023 the FCA released this Policy Statement <https://www.fca.org.uk/publication/policy/ps23-6.pdf>

My question relates to the 'client categorisation requirements'.

Recently, on a platform I use to buy crypto, I had to answer some questions so that they could categorise me (according to the above-mentioned policy it would appear) as either a 'High Net Worth Investor' OR a 'Restricted Investor'.

From what I understand:

A High Net Worth Investor earns £100,000 or more per year, or has net assets worth £250,000 or more.

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.

\*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.

And if I am not in either of these 2 categories, then I cannot buy or trade crypto assets on the platform (but can still sell crypto for cash, withdraw cash, or send crypto to an external wallet).

I am certainly not a High Net worth individual.

So if have no assets other than Bitcoin I may no longer buy Bitcoin?

This seems rather draconian. Who are they to tell me what proportion of Bitcoin is acceptable? (Oh, but if you are already rich, then its fine. More regulation to make sure 'the rich get richer and the poor get poorer'. I can't help but feel this is more to protect traditional investment markets than to protect me. I know the risks of Bitcoin and I am prepared to take them.)

Any advice or comments on this would be appreciated.

**Tags:** legal, financial-regulations, united-kingdom


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## 1 answers

### Answer by username_1 on 2024-03-23. Score: 0

Freddie New of Bitcoin Policy UK tweeted about this [here](https://twitter.com/freddienew/status/1743644557441470496) and that tweet thread goes through some of the (enforced) user disclosure experience of KYC exchanges in the UK.

According to the regulation if you are a **restricted investor** and you invested more than 10 percent of your net assets in high risk investments (e.g. Bitcoin) **last year** or intend to invest more than 10 percent of your net assets next year you can no longer use KYC exchanges such as Coincorner and Coinbase. Theoretically you could lie and continue to use those exchanges but if you can afford it get legal advice on the implications of lying on customer FCA disclosures.

There are P2P (non KYC) exchanges such as Peach Bitcoin, Hodl Hodl and Bisq but they have a different risk profile to established KYC exchanges that have been around for a decade both in terms of the parties you are buying from (or selling to) and potentially the security of the software.

The regulation is absolutely scandalous (in my opinion, trying to leave personal opinion out of this answer) but that's the country you are living in today I'm afraid.

> **Comments:**
> **username_0**: Thanks thats a useful post. Looks like Peer-to-Peer is the way forward. I can't vouch for these, but they were mentioned in the post you linked to. https://bisq.network https://peachbitcoin.com https://hodlhodl.com  

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