Overview
- Saying mandated warnings and multi-step checks slow trades in volatile markets, Arjun Sethi likened U.K. crypto risk notices to cigarette-package labels.
- Sethi argued the rules leave U.K. users unable to access roughly 75% of products available elsewhere, including DeFi staking and lending, and restrict access to Kraken’s tokenized public-equities platform.
- The FCA said its requirements for clear risk warnings, bans on incentives, and appropriateness assessments are working as intended, noting questionnaires are needed before promotions rather than before every trade.
- Sethi said Kraken will not offer tokenized shares of private companies and called such tokens a terrible idea, citing liquidity and transfer constraints highlighted by the Robinhood–OpenAI token episode.
- Context includes ongoing FCA enforcement such as October’s lawsuit against HTX, Kraken’s March 2025 Electronic Money Institution license enabling U.K. e-money services, and Sethi declining to discuss IPO timing.