The co-CEOs of cryptocurrency exchange Kraken have criticized UK rules on promoting cryptocurrencies, saying companies are required to post warnings on their websites, discouraging retail investors and exposing them to potential losses, the Financial Times reported on Wednesday.
“In the UK today, if you go to a cryptocurrency website, including Kraken, you get the equivalent of a cigarette pack (warning): ‘If you use this, you will die’,” Arjun Sethi said in an interview with the paper.
“It’s even worse for the consumer because the transaction has to happen quickly. Disclosure is important, but when you have 14 steps, it’s even worse.”
Cryptocurrency companies in the UK are required to comply with rules such as posting clear risk warnings and requiring users to fill out surveys to ensure they understand the risks of purchasing digital assets.
This is not the first time the Financial Conduct Authority (FCA) has faced criticism for what some perceive as an overly cautious approach to industry regulation, and there are signs of change.
David Geal, the FCA’s executive director for payments and digital finance, said in September that the regulator was prepared to exempt crypto companies from some existing financial services rules. This includes not having to provide customers with a cooling-off period after purchasing cryptocurrencies due to the volatility of cryptocurrencies’ prices, which can result in material changes to the value of their investments.
Kraken did not immediately respond to CoinDesk’s request for further comment.
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