The co-chief executive of cryptocurrency exchange Kraken criticized the UK’s rules on promoting cryptocurrencies, saying the warnings that companies must place on their websites hamper retail investors and expose them to potential losses, the Financial Times reported on Wednesday.
“Today in the UK, if you go to any cryptocurrency website, including Kraken, you see the equivalent of a carton of cigarettes. [warning] — ‘use this and you will die,'” Arjun Sethi said in an interview with the newspaper.
“Because of the speed at which they have to complete the transaction, it’s worse for consumers. Disclosures are important… but if there are 14 steps, it’s worse.”
Cryptocurrency companies in the UK must comply with rules that involve posting clear risk warnings and making users complete questionnaires to check they understand the risks of purchasing digital assets.
It is not the first time the Financial Conduct Authority (FCA) has faced criticism for what some perceive as an overly cautious approach to regulating the industry, and there are signs that may be changing.
In September, the FCA’s executive director of payments and digital finance, David Geale, said the regulator was willing to waive some of its existing financial services rules for cryptocurrency firms. These included not having to offer customers a cooling-off period after purchasing cryptocurrencies due to the volatile nature of cryptocurrency prices, which could result in a material change in the value of an investment.
Kraken did not immediately respond to CoinDesk’s request for further comment.
