Kraken CEO Blasts UK Crypto Rules, Says They’re Choking Retail Growth

Kraken’s co-CEO Arjun Sethi has unleashed a scathing critique of the UK’s Financial Conduct Authority (FCA) crypto promotion rules, likening mandatory risk warnings to “cigarette box” labels that scare off retail investors and block access to 75% of global crypto products. In a November 11, 2025, Financial Times interview, Sethi—co-leading the exchange with David Ripley—argued the regime creates “unnecessary friction,” slowing fund flows and driving innovation offshore, undermining Britain’s fintech ambitions.

Enacted in late 2023, the FCA’s framework mandates prominent disclaimers on all crypto sites and apps—declaring investments “high-risk” with potential total loss—and “appropriateness assessments” to gauge user understanding. It also bans promotional incentives like trading bonuses, deterring DeFi staking and lending yields available to U.S. or EU users. “You’re going to die if you use this,” Sethi quipped, noting a 14-step transaction process that hampers participation.

The backlash echoes industry woes: Firms like Binance and OKX have curtailed UK services, while the FCA sued HTX in October 2025 for non-compliance. Despite securing an Electronic Money Institution license in March 2025, Kraken limits British clients’ offerings to comply, hurting its top-15 global ranking by volume.

FCA Executive Director David Geale countered in September 2025 that rules empower informed decisions, proposing waivers like skipping cooling-off periods due to crypto’s volatility. Yet Sethi insists overreach exposes users to losses by comparison—U.S. platforms offer broader access under evolving SEC guidelines, while MiCA in the EU and Singapore’s MAS foster growth.

On X, sentiment amplified: “UK regs block 75% of products, hurting innovation,” echoed @Crypto_TownHall, tying to Kraken’s global push. As the UK eyes crypto ETN retail access post-June 2025 ban lift, Sethi urges nuance: Protect without penalizing.

This rift spotlights a global quandary: Safeguards versus scalability. For Britain—once a blockchain beacon under Rishi Sunak’s vision—the FCA’s caution risks ceding ground to agile rivals, potentially costing billions in offshore capital.