Kraken Co-ceo Warns Uk Rules Meant To Protect Users Punish Them: Ft

Arjun Sethi criticized the UK’s crypto regulations for burdening users with excessive disclaimers, saying they worsen customer experience.

Arjun Sethi, the co-CEO of major crypto exchange Kraken, criticized the United Kingdom’s crypto regulations, which he said hinder services for their customers.

In an interview with the Financial Times, Sethi said that “in the UK today, if you go to any crypto website, including Kraken’s, you see the equivalent to a cigarette box.” He suggested that the disclaimers have a significant impact on customer experience.

Sethi suggested that disclosures slow users down and that, because of the importance of speed in crypto trading, “it’s worse for customers.” He concluded that “disclosures are important [...] but if there are 14 steps, it’s worse.”

The UK Financial Conduct Authority’s (FCA) updated financial promotion regime came into force in October 2023. It introduced a “cooling-off” period for first-time crypto investors and required firms to assess whether users had sufficient knowledge and experience before allowing them to trade.

Sethi said that the rules may prompt customers to avoid investing in crypto altogether, potentially leading to missed potential gains. The FCA defended the rules, noting that “some consumers may make an informed decision that investing in crypto is not right for them — that is our rules working as intended.”

Related: ClearToken gets FCA nod for crypto settlement platform amid UK rules push

Despite frustrations with the FCA, the UK appears to be moving toward a broader alignment with the United States on digital-asset oversight.

Lisa Cameron, a former UK member of Parliament and founder of the UK-US Crypto Alliance, said she believed a joint “sandbox” between the UK and the US was in development to align their crypto markets.

She came to this conclusion after discussion with US senators and regulators and expects the sandbox’s purpose to be to “iron out some of this in terms of passporting” for crypto licenses between the UK and the US.

Source: CoinTelegraph