Michaela
Co-CEO of crypto exchange Kraken, Arjun Sethi, has criticized the United Kingdom’s crypto regulations, saying the rules’ extensive disclaimers hinder user experience and could deter potential investors from engaging with digital assets.
Key points:
- Kraken co-CEO Arjun Sethi criticized UK crypto rules, saying excessive disclaimers hurt user experience and could discourage investment.
- The FCA’s updated financial promotion regulations, including cooling-off periods and knowledge checks, may deter first-time crypto investors.
- The UK is moving toward closer alignment with US crypto policies, potentially adopting pro-crypto measures and stablecoin regulations to boost market participation.
In an interview with the Financial Times, Sethi said that crypto websites in the UK, including Kraken’s, display disclaimers comparable to a “cigarette box,” which he argued significantly affects user experience.
Sethi noted that these extensive disclosures can slow users down, a critical issue in fast-paced crypto trading. While he acknowledged the importance of providing necessary information, the Kraken CEO emphasized that excessive disclaimers ultimately make the platform less user-friendly and could deter engagement.
Additionally, Sethi addressed the UK Financial Conduct Authority’s (FCA) updated financial promotion rules, implemented in October 2023. The regulations introduced a “cooling-off” period for first-time crypto investors and required firms to evaluate whether users have adequate knowledge and experience before trading. He warned that these measures could discourage customers from investing in crypto altogether, potentially causing them to miss out on opportunities for gains.
Despite the challenges spotlighted by Sethi, the UK is showing signs of moving toward closer alignment with the United States on digital asset regulation.
In September, UK Chancellor Rachel Reeves and U.S. Treasury Secretary Scott Bessent met to discuss strengthening transatlantic cooperation in the crypto sector, focusing on regulatory alignment and initiatives to attract increased investment to the UK.
Reports suggest the UK is looking to incorporate elements of former President Donald Trump’s pro-crypto policies, with potential London-Washington agreements expected to include regulations on stablecoins.
As the UK navigates its next steps in crypto regulation, industry stakeholders are watching closely, weighing how evolving rules may shape innovation, market participation, and the global competitiveness of Britain’s digital asset ecosystem.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
