interview<\/a> with the media, marking the first time a crypto official has spoken out against the financial promotion rules for crypto services introduced by the Financial Conduct Authority in 2023.<\/p>\nMoreover, he also said that the U.K\u2019s strict crypto rules are barring users from accessing about 75% of the entire suite of crypto products, including DeFi staking and lending. This is due to the FCA\u2019s rule that prohibits trading incentives.<\/p>\n
<\/p>\n
The FCA\u2019s rules require companies that promote crypto services in the U.K to post clear risk warnings on all their websites and apps, create \u201cpositive frictions\u201d between firms and ask users to fill out assessments to prove whether or not they understand the risks related to trading crypto. They also ban companies from providing incentives for investors.<\/p>\n
Sethi said that these extra precautions could potentially deter customers from investing in crypto entirely, which would make them miss out on potential gains.<\/p>\n
The FCA responded to the criticism by saying the rules are necessary to make sure that customers are aware of the both the benefits and risks related to investing in crypto. Though, the agency noted that customers must answer questions before they see a promotion from a crypto firm, it is not always required every time customers make a trade.<\/p>\n
\u201cSome consumers may make an informed decision that investing in crypto is not right for them that is our rules working as intended,\u201d said the U.K FCA.<\/p>\n
U.K financial regulators have been known for their cautious stance against crypto, especially when compared to the pro-crypto regulations in the U.S. Just last month, the FCA sued the Justin Sun-linked crypto exchange HTX for allegedly failing to comply with the region\u2019s financial promotion rules.<\/p>\n
Kraken\u2019s next steps in the near future<\/h2>\n
Kraken co-CEO Arjun Sethi said in his interview with Financial Times that the crypto firm will not be offering tokenized shares of private companies. He specifically referred to its competitor, Robinhood\u2019s decision to offer shares in OpenAI. The decision had faced backlash on the market earlier this year, with OpenAI denying any involvement with the tokens promoted on the platform.<\/p>\n
Sethi said that the argument used by Robinhood chief Vlad Tenev is \u201cflawed\u201d and that he believed tokenizing private company stocks is a \u201cterrible idea\u201d because investors would have a hard time selling their investments.<\/p>\n
When asked about Kraken\u2019s plans to initiate an IPO sometime next year, Sethi declined to comment or give details about the exact schedule.<\/p>\n
Since March 2025, Kraken has been granted an Electronic Money Institution license from the UK\u2019s Financial Conduct Authority. The license would allow the crypto exchange to issue electronic money and facilitate faster deposits and withdrawals for U.K customers.<\/p>\n
Not only that, the license would also allow the exchange to establish partnerships with local financial institutions and introduce new products targeting U.K users. At the time, Kraken\u2019s U.K General Manager Bivu Das said that the U.K was on \u201cthe brink of mass crypto adoption\u201d and that the exchange was prepared to pave the way.<\/p>\n
<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
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