Kraken Co-CEO Slams UK Crypto Marketing Rules as Overly Restrictive

Kraken co-CEO Arjun Sethi has sharply criticized the UK's new cryptocurrency marketing regulations, likening mandatory risk warnings to cigarette labels. Speaking on November 13, 2025, Sethi argued that the Financial Conduct Authority's 14-step compliance process creates unnecessary barriers for retail investors, potentially limiting their participation in the digital asset market. The comments come amid Kraken's growing global presence, following its $1.5 billion acquisition of NinjaTrader. Sethi warned that excessive regulation could harm retail investors by restricting access to important market information while failing to address more substantive risks in the crypto sector. The critique highlights ongoing tensions between crypto exchanges and regulators as governments worldwide grapple with balancing investor protection with innovation in digital assets.

Kraken Chief Criticizes UK Crypto Restrictions, Warns of Harm to Retail Investors

Kraken co-CEO Arjun Sethi has launched a scathing critique of the UK's new crypto marketing regulations, comparing the mandatory risk warnings to cigarette labels. The Financial Conduct Authority's 14-step compliance process is creating unnecessary friction for retail investors, Sethi argues, potentially stifling participation in the digital asset market.

The $1.5 billion NinjaTrader acquisition positions Kraken to expand its derivatives offerings even as regulatory headwinds intensify. Sethi maintains that while risk disclosures are necessary, the current UK approach crosses into counterproductive territory. "You see the equivalent of a cigarette box warning: 'Use this and you're going to die,'" he told The Financial Times.

UK Crypto Industry Shows Promise Despite Regulatory Growing Pains

The UK cryptocurrency sector continues to demonstrate growth potential, though regulatory challenges persist. Kraken's co-CEO Arjun Sethi reaffirmed the exchange's commitment to the British market, citing positive progress with clients and regulators. The company maintains hundreds of UK employees and continues expanding its product offerings.

Regulatory friction centers on consumer protection mechanisms inherited from traditional finance. Sethi criticized excessive disclaimer requirements as counterproductive - training users to ignore warnings rather than promoting genuine understanding. Current FCA rules implemented in October 2023 mandate 24-hour cooling periods and complex suitability tests, creating operational hurdles without clear consumer benefits.

Industry leaders argue for modernization of protection frameworks to match crypto's unique characteristics. The tension between innovation and regulation remains unresolved, with the UK's approach potentially limiting its competitiveness as a digital asset hub.