Kraken CEO Slams UK Crypto Regulations as Overly Restrictive for Retail Investors

Kraken's co-CEO Arjun Sethi has sharply criticized the UK's cryptocurrency marketing regulations, likening the mandatory risk warnings to tobacco-style health alerts. The Financial Conduct Authority's (FCA) 2023 regulatory framework imposes strict requirements, including explicit disclaimers, bans on incentives, and rigorous customer suitability checks. Sethi argues that these measures create unnecessary barriers for retail investors, with some users facing up to 14-step processes just to access basic crypto services. This critique highlights the ongoing tension between regulatory oversight and accessibility in the rapidly evolving cryptocurrency market.

Kraken CEO Criticizes UK Crypto Regulations as Retail Investment Barrier

Kraken's co-CEO Arjun Sethi has launched a scathing critique of the UK's cryptocurrency marketing rules, comparing mandatory risk warnings to tobacco-style health alerts. The Financial Conduct Authority's 2023 regime requires explicit disclaimers, incentive bans, and customer suitability checks—measures Sethi claims create excessive friction for retail investors.

"UK users face 14-step processes just to access basic services, while being blocked from 75% of crypto products including DeFi staking," Sethi told the Financial Times. The exchange executive argues these safeguards ultimately harm consumers by delaying transactions and potentially causing missed investment opportunities during market movements.

Regulators maintain the rules protect inexperienced investors from high-risk assets. But industry leaders counter that disproportionate restrictions may drive activity to less compliant platforms, undermining the very protections the FCA seeks to enforce.

Ethereum Whales Accumulate $350M in ETH Ahead of December Fusaka Upgrade

Ethereum whales are aggressively accumulating ETH despite recent market turbulence, with on-chain data revealing purchases exceeding $350 million. A newly created wallet acquired 20,000 ETH ($70M) via Kraken, while another entity secured 24,007 ETH ($82M) through Galaxy Digital's OTC desk. Notably, a separate $206 million AaveETH transaction underscores institutional confidence.

The buying spree coincides with ETH's dip to $3,200, with CryptoQuant analysts identifying $3,000-$3,400 as a critical support zone. Whale activity suggests strategic positioning ahead of Ethereum's Fusaka upgrade in December, reflecting long-term bullish sentiment amid short-term volatility.