The co-CEO of cryptocurrency exchange Kraken has criticized UK rules on promoting cryptocurrencies, saying the warnings companies are required to place on their websites annoy retail investors and expose them to potential losses. the Financial Times reported Wednesday.
“In the UK today, if you go to any crypto website, including Kraken’s, you see the equivalent of a cigarette box (warning): ‘use this and you’ll die,'” Arjun Sethi said in an interview with the newspaper.
“Because of how quickly they have to complete the transaction, it’s worse for consumers. Disclosures are important…but if there are 14 steps, it’s worse.”
Crypto companies in the UK are required to follow rules that involve publishing clear risk warnings and requiring users to fill out questionnaires to check they understand the risks of purchasing digital assets.
This is not the first time the Financial Conduct Authority (FCA) has been criticized for what some perceive as an overly cautious approach to regulating the sector, and there are signs that this could change.
In September, David Geale, the FCA’s executive director for payments and digital finance, said the regulator was prepared to waive some of its existing financial services rules for crypto companies. This included not having to offer customers a cooling-off period after purchasing cryptocurrencies due to the volatile nature of cryptocurrency prices, which could result in a material change in the value of an investment.
Kraken did not immediately respond to CoinDesk’s request for additional comment.
