Why am I seeing extra steps when buying crypto in the UK?

Understanding UK Financial Promotions (FinProm) for Crypto Services

We know extra steps during sign-up can feel frustrating. UK regulations require us to run a few checks before you can buy crypto — this article explains what each one is, why it's there, and what to expect.


Why you’re seeing extra steps

If you’re accessing our services from the UK, UK Financial Conduct Authority (FCA) rules require crypto companies to follow specific standards around how they promote their services. These are called Financial Promotion (FinProm) rules. The goal is to make sure you fully understand the risks before you commit to anything.

Cryptoassets are considered high‑risk in the UK, and UK regulations are designed to ensure that information is clear, fair, and not misleading.


What happens when you click “Buy crypto” or “Continue”

When you start a transaction – by clicking “Buy crypto”, “Continue”, or a similar button – that action is treated as a Direct Offer Financial Promotion (DOFP). UK rules require us to  provide extra safeguards before you can proceed. This means UK customers may experience a slightly different flow compared to users in other regions.


What you may see during onboarding

If you’re new to Banxa in the UK, your onboarding will include:

  1. Personalised risk warning – We’ll show you a risk warning. Read it carefully to understand the what you could lose.
  2. Short quiz (appropriateness assessment) – You’ll answer a short questionnaire to confirm your understanding of how crypto works and the risks.
  3. Client categorisation – You’ll confirm which category applies to you (e.g., High Net Worth Investor, Restricted Investor, Retail client). This determines what information and protections we’re required to give you
  4. A cooling‑off period before certain services become available
    These steps help ensure you understand the risks before you start using higher‑risk crypto services.


Client categorisation

As part of onboarding, you’ll be asked to confirm your client category. This helps determine what information and protections apply to you.

Common categories include:

  • High Net Worth Investor (HNWI): A UK individual with annual income over £100,000 or net assets over £250,000.
  • Restricted Investor: A UK individual who allocates less than 10% of their net assets each year to high‑risk investments like cryptoassets.

Most individual users will be classified as retail clients and receive the highest level of regulatory protection.
Our onboarding flow will guide you through this step.


Appropriateness assessment

UK customers must complete a short questionnaire to help assess their understanding of cryptoassets and the risks involved.

This may include questions about:

  • crypto volatility
  • the risk of losing money
  • how transactions work
  • fraud and scam awareness

The purpose is not to restrict access. If your answers indicate you may need more information, additional risk explanations will be shown before you continue.


Cooling‑off period

New UK customers will experience a mandatory cooling‑off period of at least 24 hours.

During this time:

  • you won’t be able to complete a DOFP‑related transaction
  • key information remains available for review
  • you have time to consider whether you want to proceed

Once the cooling‑off period ends, you can choose whether to continue or exit the journey.


Who can I contact if I have more UK Financial Promotions questions?

You can reach our support team via:

Banxa Support

Live chat

Email



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