Kraken CEO Slams UK’s Restrictive Crypto Marketing Regulations
Kraken co-CEO Arjun Sethi has publicly criticized the UK's new crypto marketing rules, implemented by the Financial Conduct Authority (FCA) in October 2023, as overly restrictive and detrimental to retail investor accessibility. Sethi argues that the regulations, which require prominent risk warnings and investor appropriateness checks, create unnecessary friction and disrupt user experience. He likened these requirements to tobacco-style disclaimers, suggesting they are excessive for the crypto industry. The Kraken executive's comments highlight the growing tension between crypto exchanges and regulatory bodies as governments worldwide seek to impose stricter controls on digital asset marketing. This development comes at a time when the crypto industry is pushing for broader adoption, making regulatory clarity and proportionality crucial for its growth. The UK's approach, while aimed at consumer protection, may inadvertently stifle innovation and limit retail participation in the crypto market according to industry leaders like Sethi.
Kraken CEO Criticizes UK Crypto Marketing Rules as Overly Restrictive
Kraken co-CEO Arjun Sethi has launched a sharp critique of the UK's recently implemented crypto marketing regulations, arguing they create unnecessary friction for retail investors. The Financial Conduct Authority's October 2023 rules mandate prominent risk warnings and investor appropriateness checks—requirements Sethi compares to tobacco-style disclaimers that disrupt user experience.
The exchange executive revealed these compliance burdens have forced Kraken to withhold certain products from UK customers that remain available to US users. "It's worse for consumers," Sethi stated, noting the regulations' multiple verification steps significantly slow transaction speeds during critical market movements.
This regulatory friction comes as the UK attempts to position itself as a global crypto hub while implementing consumer protections. The rules require platforms to display warnings like "Don't invest unless you're prepared to lose all the money you invest" before every transaction—a measure Sethi claims disproportionately impacts retail participation.
Kraken's Tokenized Stock Platform XStocks Hits $10 Billion Milestone
XStocks, a tokenized equity platform developed by Backed in partnership with Kraken, has surpassed $10 billion in total transaction volume within just 135 days of its public launch. The platform offers exposure to over 60 major stocks and ETFs—including Nvidia, Amazon, Tesla, and Meta—through blockchain-based tokens pegged 1:1 to underlying assets.
Operating across Ethereum, Solana, BNB Chain, and Tron, XStocks has attracted 45,000 onchain holders and manages $135 million in assets. Its rapid growth underscores rising demand for tokenized traditional assets, though regulatory ambiguity persists as tokens represent synthetic exposure rather than direct ownership.
The platform's cross-chain interoperability and global accessibility—serving users in 160+ countries—position it at the forefront of the real-world asset (RWA) tokenization trend. Nearly $2 billion in onchain transactions highlights deepening integration between crypto markets and conventional equities.
