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Arjun Sethi, the co-CEO of prominent crypto exchange Kraken, lambasted the United Kingdom’s cryptocurrency regulations, which he claimed obstruct services for their clientele.
In an interview with the Financial Times, Sethi remarked that “in the UK today, when you visit any crypto website, including Kraken’s, you encounter something akin to a cigarette packet.” He implied that the warnings significantly affect customer interaction.
Sethi asserted that disclosures hinder users and that, due to the critical nature of speed in crypto trading, “it’s detrimental for clients.” He concluded that “disclosures are vital […] but if there are 14 steps, it’s detrimental.”
The UK Financial Conduct Authority’s (FCA) revised financial promotion framework came into effect in October 2023. It implemented a “cooling-off” phase for novice crypto investors and mandated firms to evaluate whether users possessed adequate knowledge and experience prior to permitting them to trade.
Sethi indicated that the regulations could lead clients to steer clear of investing in crypto altogether, potentially resulting in lost potential profits. The FCA defended the regulations, highlighting that “some consumers may determine that investing in crypto isn’t suitable for them — that is our regulations functioning as intended.”
Related: ClearToken receives FCA approval for crypto settlement platform amid UK regulations focus
The UK is gradually embracing crypto
Despite dissatisfaction with the FCA, the UK seems to be progressing toward a wider alignment with the United States on digital-asset supervision.
Lisa Cameron, a former UK parliament member and founder of the UK-US Crypto Alliance, expressed her belief that a cooperative “sandbox” between the UK and the US is under development to synchronize their crypto sectors.
She reached this conclusion following discussions with US senators and regulators and anticipates that the sandbox’s intent will be to “resolve some of this regarding passporting” for crypto licenses between the UK and the US.
On Monday, the Bank of England released a consultation document proposing a regulatory schema for stablecoins. This new legislation emphasizes sterling-backed “systemic stablecoins,” which are extensively utilized in payments, akin to the US’s GENIUS Act.
Related: British crypto company KR1 eyes London Stock Exchange as UK warms to industry: FT
UK seeks US examples on crypto
A crypto partnership between the UK and the US is not an unprecedented event. Reports from September indicated that Treasury agencies in the US and UK established a transatlantic task force to investigate “short-to-medium term collaboration on digital assets.” Additionally, in September, UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent discussed how the two nations could enhance their cooperation on crypto.
The month of September also saw UK trade organizations urge the UK government to incorporate blockchain technology into a tech collaboration with the US initiative known as “Tech Bridge.” A collective letter from the organization cautioned that “excluding digital assets from the UK-US Tech Bridge would be a missed chance,” and that it “risks leaving Britain sidelined.”
Magazine: UK’s Orwellian AI murder prediction system, will AI take your job? AI Eye
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