Kraken’s co-CEO Arjun Sethi criticized the UK’s Financial Conduct Authority (FCA) this week for imposing strict disclosure requirements that he says “discourage retail participation” in crypto. Speaking at a fintech conference in London, Sethi argued that the excessive risk warnings and multi-step checks required by the FCA are slowing down capital flows and making the UK less competitive in digital finance.
The FCA’s 2023 crypto marketing framework mandates explicit risk disclosures, investor suitability tests, and bans on promotional incentives. While regulators defend these as consumer protection measures, industry players like Kraken say they create unnecessary friction for retail users and reduce liquidity. Several firms, including Coinbase and Bitstamp, have voiced similar concerns, warning the UK risks losing fintech innovation to friendlier jurisdictions like the U.S. and Singapore.
Sethi said Kraken remains committed to compliance but urged regulators to “balance protection with access.” The FCA has yet to comment on whether revisions to the framework are being considered.
Source: https://x.com/WuBlockchain/status/1988479476779581681
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