Kraken Co-CEO Says UK Crypto Promotion Rules May Harm Retail Investors: FT
Kraken's Co-CEO stated that UK crypto promotion rules, like mandatory warnings, hinder retail investors due to transaction delays.Summary
Arjun Sethi, Co-CEO of cryptocurrency exchange Kraken, criticized the U.K.'s rules governing crypto promotions, telling the Financial Times that required warnings and questionnaires slow down transaction times, potentially harming retail investors when asset prices are volatile. Sethi compared the required warnings to a cigarette box warning, suggesting that while disclosures are important, excessive steps make the process worse for consumers. Crypto companies in the U.K. must adhere to rules requiring clear risk warnings and user questionnaires to ensure understanding of digital asset risks. This criticism follows previous scrutiny of the Financial Conduct Authority's (FCA) cautious regulatory approach, although there are signs of potential change, as the FCA previously indicated a willingness to waive certain rules, like cooling-off periods, for crypto firms.
(Source：CoinDesk)