The co-CEO of cryptocurrency exchange Kraken criticized Britain’s rules on promoting crypto, saying warnings companies are required to post on their websites hinder retail investors and expose them to potential losses, the Financial Times reported on Wednesday.
“In the UK today, if you go to any crypto website, including Krakens, you see the equivalent of a cigarette pack [warning] – ‘use this and you will die’,” Arjun Sethi said in an interview with the newspaper.
“Because of the speed at which they have to complete the transaction, it’s worse for consumers. Information is important … but if there are 14 steps, it’s worse.”
Crypto companies in the UK are required to comply with rules that involve sending clear risk warnings and having users complete questionnaires to check they understand the risks of buying digital assets.
It is not the first time the Financial Conduct Authority (FCA) has faced criticism for what some see as an overly cautious approach to regulating the industry, and there are signs that may be changing.
In September, the FCA’s chief executive of payments and digital finance, David Geale, said the regulator was prepared to waive some of its existing financial services rules for crypto businesses. These included not having to offer customers a cooling-off period after purchasing crypto due to the volatile nature of cryptocurrency prices, which could result in a significant change in the value of an investment.
Kraken did not immediately respond to CoinDesk’s request for further comment.
