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

Arjun Sethi, co-CEO of Kraken, has expressed concerns regarding the U.K.'s regulations on cryptocurrency promotions, stating that these rules could negatively impact retail investors. The regulations require crypto companies to provide risk warnings and mandate that users complete questionnaires to confirm their understanding of the risks associated with digital assets. Sethi likened the experience on crypto websites to a cigarette warning box, arguing that these extensive disclosures slow down transaction processes, especially during volatile price movements. He emphasized that while disclosures are necessary, the overwhelming number of steps may deter users and worsen their experience. This critique comes amid wider scrutiny of the Financial Conduct Authority's (FCA) cautious regulatory approach, which has been criticized for potentially stifling industry growth. Despite this, there are indications the FCA may reconsider its stance on some rules, such as eliminating mandatory cooling-off periods post-purchase.

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