Arjun Sethi argues that excessive disclaimers and trading restrictions harm customer experience and slow innovation.
Sethi: UK crypto websites look like “cigarette boxes”
Arjun Sethi, co-CEO of Kraken, has voiced frustration with the United Kingdom’s crypto regulatory environment, saying that rules intended to protect consumers are now hurting user experience and discouraging participation.
In an interview with the Financial Times, Sethi compared the disclaimer-heavy crypto websites required under UK Financial Conduct Authority (FCA) rules to “cigarette boxes” — plastered with warnings that make trading cumbersome and uninviting.
“In the UK today, if you go to any crypto website, including Kraken’s, you see the equivalent to a cigarette box,” Sethi said. “Disclosures are important, but if there are 14 steps, it’s worse for customers.”
According to Sethi, these layers of mandatory risk disclosures and cooling-off periods undermine one of crypto’s key advantages — speed — and could drive users away from regulated exchanges.
FCA defends consumer protection focus
The FCA’s updated financial promotions regime, which came into force in October 2023, introduced stricter requirements for crypto firms operating in the UK. These include:
- A 24-hour “cooling-off” period for first-time investors,
- A knowledge and experience assessment before trading, and
- Prominent risk warnings across all marketing materials.
While Sethi argues these measures reduce accessibility, the FCA maintains they are working as intended.
“Some consumers may make an informed decision that investing in crypto is not right for them — that is our rules working as intended,” the regulator said in response.
UK eyes closer alignment with US on crypto policy
Despite tensions with the FCA, the UK government appears to be moving toward a more structured and internationally aligned crypto framework.
Lisa Cameron, founder of the UK-US Crypto Alliance and former MP, revealed that a joint regulatory sandbox between the UK and the US is in development. The goal: to harmonize crypto licensing and oversight, reducing friction for firms operating across both markets.
Meanwhile, the Bank of England recently published a consultation paper on stablecoins, focusing on sterling-backed “systemic” stablecoins used in payments — a move echoing the U.S. GENIUS Act, which has accelerated stablecoin adoption stateside.
Broader transatlantic cooperation in progress
The UK and U.S. have been deepening their crypto collaboration since mid-2024. In September, both nations formed a transatlantic task force to explore regulatory convergence, while UK trade groups urged the government to include blockchain and digital assets in its Tech Bridge program with the U.S.
“Excluding digital assets from the UK-US Tech Bridge would be a missed opportunity,” said one coalition letter, warning that such exclusion could leave Britain “on the sidelines” of innovation.
Kraken’s Arjun Sethi reflects growing industry frustration that well-intentioned consumer protection rules are stifling user access and innovation. However, ongoing UK-US collaboration and stablecoin regulatory progress could mark the beginning of a more balanced approach — one that protects investors without suffocating growth in Britain’s digital asset industry.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.