Jesse Powell, co-CEO of cryptocurrency exchange Kraken, has voiced strong concerns regarding the United Kingdom’s regulatory framework for digital assets, arguing that measures intended to safeguard investors are inadvertently penalizing them. In a recent interview with the Financial Times, Powell highlighted how excessive compliance requirements, particularly mandatory risk disclaimers, are creating significant friction for users.
According to Powell, the UK’s stringent regulatory approach forces platforms to inundate customers with repetitive warnings and complex disclosures before they can execute transactions. This bureaucratic hurdle not only complicates the user journey but also detracts from the overall customer experience, potentially discouraging participation in the digital asset ecosystem.
Powell emphasized that while consumer protection remains paramount, the current implementation of these rules appears counterproductive. He suggested that regulators should collaborate more closely with industry participants to develop balanced guidelines that achieve security objectives without undermining usability. This critique comes as global financial hubs compete to establish clear, effective regulatory standards for cryptocurrencies, with the UK’s approach being closely watched by market participants worldwide.
