Arjun Sethi, the co-CEO of Major Crypto Exchange Kraken, criticized the United Kingdom’s crypto regulations, which he believes hinder services for their customers.
In a interview In the Financial Times, Sethi said that “in the UK today, if you go to any crypto website, including Kraken’s, you see the equivalent of a pack of cigarettes.” He suggested that disclaimers have a significant impact on the customer experience.
Sethi suggested that disclosures slow users down and that, given the importance of speed in crypto trading, “it’s worse for customers.” He concluded that “disclosure is important (…) but if there are 14 steps, it’s even worse.”
The UK Financial Conduct Authority’s (FCA) updated financial promotion regime Became strong in October 2023. It introduces a “cooling-off” period for first-time crypto investors and requires companies to assess whether users have sufficient knowledge and experience before trading.
Sethi said the rules could 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’s our rules working as intended.”
Related: ClearToken gets FCA NOD for crypto settlement platform amid UK rules push
The UK is slowly opening up to crypto
Despite FCA failures, the UK appears to be moving towards a greater alignment with the United States on Digital-Asset Oversight.
Lisa Cameron, a former United Kingdom member of Parliament and founder of the UK-US Crypto Alliance, said she believes a joint “Sandbox ”between UK and US are in development to align their crypto markets.
He came to this conclusion after a discussion with US senators and regulators and expects the sandbox’s purpose to be to “iron out some of the passporting rules” for crypto licenses between the UK and the US.
On Monday, the Bank of England A consultation paper has been published proposing a regulatory framework for StableCoins. The new law focuses on sterling-denominated “systemic stablecoins” widely used in payments, similar to The Genius Act of the US.
Related: British crypto firm kr1 Eyes London Stock Exchange As UK Heats Up Industry: FT
The UK looks to the US for an example in crypto
A crypto partnership between the UK and the US is not a new phenomenon. The September reports mentioned that the Treasury authorities in the US and UK create a transatlantic task force To explore “Short-to-Medium Term Collaboration in Digital Assets.” Also in September, UK chancellor Rachel Reeves and US Treasury Secretary Scott Bessent discussed how the two countries could Strengthen their crypto coordination.
September also saw trade groups in the UK Urge the UK government to integrate blockchain The technology in a US technology collaboration program known as “Tech Bridge.” A joint letter by the organization warned that “excluding digital assets from the UK-US Tech Bridge would be a missed opportunity,” and it “risks leaving Britain on the margins.”
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