TLDR
Kraken’s co-CEO Arjun Sethi criticized the UK’s new crypto marketing rules for slowing down transactions and discouraging retail investors.
The UK’s Financial Conduct Authority introduced rules requiring clear risk warnings and appropriateness checks for crypto firms.
Sethi argued that the excessive number of compliance steps makes it harder for users to engage in crypto markets.
Kraken is concerned that UK users are unable to access many of the crypto products available to US customers due to these regulations.
Sethi emphasized that the additional friction created by the rules could prevent potential gains for consumers in the crypto space.
Kraken’s co-CEO, Arjun Sethi, criticized the UK’s strict crypto marketing rules. He argued that these regulations slow down transactions and make it harder for retail investors to participate in crypto. The Financial Conduct Authority (FCA) introduced these rules in late 2023, which require crypto firms to post clear risk warnings and conduct appropriateness checks on investors.
UK’s Crypto Marketing Rules Cause Friction
Sethi highlighted that crypto websites, including Kraken’s, now display prominent warnings similar to those seen on cigarette packaging. These disclaimers, according to Sethi, create unnecessary friction for users. “It’s worse for consumers,” he said, emphasizing that the regulations slow down the process of investing in crypto.
The FCA’s new rules were designed to ensure that consumers are aware of the risks involved in crypto investments. However, Sethi believes that the added steps deter some users from engaging with crypto markets altogether. He explained that excessive disclosure requirements, like 14 steps, create barriers that harm the user experience.
Sethi argued that the excessive compliance measures hurt retail investors. He warned that these rules could prevent potential gains for people who might be discouraged from investing. According to him, a simpler process would benefit consumers more, allowing them to move faster in a rapidly changing market.
Kraken CEO Criticizes UK Crypto Regulations
The Financial Conduct Authority’s rules demand that crypto firms assess whether consumers understand the risks involved. These requirements include forbidding promotional incentives and building positive frictions for customers. Kraken, Sethi said, is concerned about the impact these regulations have on British users.
He noted that tighter protections in the UK prevent users from accessing a significant portion of crypto products. Kraken’s co-CEO pointed out that British users can only access about a quarter of the offerings available to US customers. These include higher-yield products and decentralized finance lending, which have become popular in the crypto market.
According to FT, Kraken co-CEO Arjun Sethi criticized the UK’s strict crypto regulations for hindering capital flows and hurting user experience. He said UK users are blocked from about 75% of crypto products, including DeFi staking and lending. Sethi also said Kraken won’t offer…
— Wu Blockchain (@WuBlockchain) November 12, 2025
Kraken is one of the largest global crypto exchanges. Despite the regulatory hurdles, the company remains committed to expanding its business and adapting to the diverse regulatory environments in both the UK and the US. It recently announced its plans to go public in 2026, working with major investment banks like Goldman Sachs and Morgan Stanley.
Sethi also criticized the UK’s enforcement actions, noting that companies like HTX have been sued for failing to comply with the new rules. The FCA has been stepping up its efforts to regulate the crypto sector, targeting firms that don’t adhere to its strict guidelines. The exchange, linked to Justin Sun, faces legal challenges over its non-compliance.
Kraken’s planned acquisition of the NinjaTrader platform highlights its strategy to grow despite regulatory challenges. The $1.5 billion deal would help Kraken deepen its involvement in the futures and options markets. Despite regulatory headwinds in the UK, Kraken is actively pursuing ways to expand its services globally, with a focus on both the US and UK markets.
