Kraken Co-CEO Says UK Crypto Promotion Rules May Harm Retail Investors: FT

Why It Matters

The remarks underscore the clash between stringent consumer‑protection rules and the need for swift market access, and any regulatory softening could reshape how crypto firms engage UK retail customers.

Summary

Kraken co‑CEO Arjun Sethi warned that the UK’s FCA‑mandated crypto promotion rules – mandatory risk warnings and multi‑step questionnaires – slow transaction times and act like overly harsh “cigarette‑box” warnings, which he says could harm retail investors. He noted that the 14‑step disclosure process is especially detrimental when asset prices are volatile. The criticism comes as the FCA signals possible easing of some requirements, such as dropping the cooling‑off period for crypto purchases. Kraken did not respond to requests for comment.