The co-CEO of cryptocurrency exchange Kraken criticized the U.K.’s rules on promoting crypto, saying that warnings companies are required to place on their websites hinder retail investors and expose them to potential losses, the Financial Times reported on Wednesday.
“In the U.K. today, if you go to any crypto website, including Kraken’s, you see the equivalent to a cigarette box [warning] — ‘use this and you’re going to die,’” Arjun Sethi said in an interview with the newspaper.
“Because of the speed at which they have to do the transaction, it’s worse for consumers. Disclosures are important … but if there are 14 steps, it’s worse.”
Crypto companies in the U.K. are required to adhere to rules that involve posting clear risk warnings and making users fill out questionnaires to check they understand the risks of buying digital assets.
It’s 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 it may be changing.
In September, the FCA’s executive director for payments and digital finance, David Geale, said the regulator was prepared to waive some of its existing financial services rules for crypto companies. These included not having to offer customers a cooling-off period after purchasing crypto due as 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.
