Kraken Says UK Crypto Rules Block 75% of Products, Curbing Access
The UK’s Financial Conduct Authority (FCA) introduced strict crypto promotion rules in late 2023, aiming to protect retail investors.
Quick overview
- The UK's FCA introduced strict crypto promotion rules in late 2023 to protect retail investors, requiring risk warnings and prohibiting investment incentives.
- Kraken co-CEO Arjun Sethi criticized these regulations for creating a complex trading process that deters potential investors.
- The FCA has intensified enforcement actions against non-compliant exchanges, including HTX, which allegedly failed to adhere to the new rules.
- Sethi argues that the cautious UK approach limits retail participation and access to products available in other markets.
The UK’s Financial Conduct Authority (FCA) introduced strict crypto promotion rules in late 2023, aiming to protect retail investors. Companies marketing digital assets to UK users must include prominent risk warnings, prohibit investment incentives, introduce “positive frictions,” and run appropriateness checks to ensure consumers understand the risks.
Kraken co-CEO Arjun Sethi criticized the regime, telling the Financial Times that the rules slow transactions and deter potential investors. “On any UK crypto website, you see warnings similar to cigarette packaging — ‘use this and you’re going to die,’” Sethi said. “Disclosures are important, but if there are 14 steps to trade, it’s worse for consumers.”
Tighter Oversight Spurs Enforcement Actions
The FCA has intensified enforcement this year, suing exchanges like HTX for promotion breaches. HTX, connected to Justin Sun, a prominent crypto investor with ties to US digital asset ventures, allegedly failed to comply with the new rules.
🇬🇧NEW: Kraken CEO has criticized the UK’s crypto regulations, calling them “unlikable” and warning they risk driving innovation offshore instead of fostering a competitive digital asset market. pic.twitter.com/fFzteBfRxF
— The Crypto Times (@CryptoTimes_io) November 12, 2025
- FCA rules prohibit marketing incentives and require checks on customer understanding.
- Firms must clearly communicate both risks and potential benefits.
- Companies failing to comply face fines and litigation.
Sethi and other executives argue that Britain’s cautious approach limits retail participation and leaves UK investors unable to access many products available abroad.
Kraken Expands Amid Diverging Regulations
Founded in 2011, Kraken ranks among the world’s top 15 exchanges by trading volume. Sethi noted that UK users currently cannot access about 75% of the products available in the US, including high-yield offerings and decentralized finance (DeFi) lending.
🇬🇧#Crypto
Kraken co-CEO Arjun Sethi criticized the U.K.’s stringent crypto regulations, saying they restrict capital movement and degrade the user experience. According to him, U.K. customers are unable to access roughly 75% of crypto products, including DeFi staking and lending… pic.twitter.com/g1eBdNGCtH
— Land⅃ⓞRD 🦍 (@HooLiFuk) November 12, 2025
The exchange is preparing for a public listing, possibly as early as 2026, with Morgan Stanley and Goldman Sachs leading the deal. Kraken is also pursuing expansion: in March, the company announced a $1.5 billion acquisition of derivatives platform NinjaTrader to strengthen its futures and options presence.
- Kraken continues to navigate diverging regulatory environments in the UK and US.
- UK rules create a slower, more complex user experience.
- Expansion into derivatives and US markets remains a strategic priority.
Sethi concluded that while investor protections are critical, excessive friction risks alienating retail users and slowing the growth of crypto adoption in Britain.
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