Kraken Boss Slams UK Crypto, Claims Users Are Blocked From 75% Blockchain Products

Core Viewpoint - Kraken's co-CEO Arjun Sethi criticizes the U.K. crypto regulations as overly restrictive, claiming they hinder the industry's growth and innovation compared to the U.S. [1][7] Regulatory Impact - The Financial Conduct Authority (FCA) introduced new promotion rules in late 2023, requiring crypto firms to display prominent risk warnings and conduct "appropriateness assessments" for customers before purchasing digital assets [3][5] - Sethi argues that these regulations create unnecessary friction for investors, comparing the mandatory warnings to "cigarette box" labels, which he believes deter ordinary investors from accessing opportunities [2][4] Market Access - Due to the U.K. regulations, Kraken's British users reportedly cannot access approximately 75% of the products available to U.S. customers, significantly limiting their investment options [5][8] - The restrictions contrast sharply with Kraken's expansion efforts in other markets, such as its recent $100 million acquisition of Small Exchange, a U.S. futures trading platform [5][6] Industry Comparison - Industry leaders, including Sethi, express concern that the U.K. is falling behind the U.S. in crypto innovation, especially as the U.S. loosens its regulatory stance [9]