Key Takeaways
- Canary Capital’s spot XRP ETF could begin trading as early as Thursday.
- SEC filings and procedural updates suggest imminent approval.
- Institutional interest is growing, with Franklin Templeton preparing a competing XRP ETF.
- Launches of regulated ETFs could attract new investment, boosting XRP adoption.
Kraken Slams UK Crypto Regulations as “Overly Restrictive”
Kraken Co-CEO Arjun Sethi has sharply criticized the United Kingdom’s tightening grip on cryptocurrency regulation, calling the rules “restrictive” and harmful to innovation. While the Financial Conduct Authority (FCA) claims its measures protect consumers, Sethi argues they are instead slowing transactions, limiting access to crypto products, and curbing investor participation.
Speaking to the Financial Times, Sethi likened current UK crypto warnings to cigarette labels, saying, “If you go to any crypto website, including Kraken’s, you see the equivalent of a cigarette box warning — ‘use this and you’re going to die’.” He added that excessive risk disclosures and procedural hurdles make trading less efficient and discourage legitimate market engagement.
Regulatory Intent vs. Market Reality
The FCA’s latest rules, implemented in late 2023, require crypto companies to display detailed risk warnings, remove financial incentives, and verify customer understanding before allowing investments. While the regulator insists these measures ensure informed decision-making, industry leaders say they’re strangling progress.
Also Read: Ripple Forecasts $18.9 Trillion Tokenization Market by 2033, Positioning XRP and RLUSD at the Core
Sethi revealed that Kraken’s UK users can access only about 25% of the products available to American clients, including limited exposure to DeFi and yield-based tools. “Because of the speed at which they have to do the transaction, it’s worse for consumers,” he said.
Experts like Consensys’ Bill Hughes agree, noting that the UK’s cautious tone contrasts sharply with the US’s more flexible stance. “While in the US there is a real desire to give blockchain technology room to breathe, the tone in the UK is very different,” Hughes said at the Zebu Live event in London.
Signs of Progress in the UK
Despite the criticism, the UK is making small steps toward modernization. The FCA recently approved ClearToken’s CT Settle, a regulated digital asset settlement service designed to improve transaction efficiency. The Bank of England has also relaxed restrictions, allowing stablecoin issuers to hold up to 60% of reserves in government bonds.
Meanwhile, BlackRock’s iShares Bitcoin ETF launch on the London Stock Exchange signals institutional confidence in the market’s future.
Also Read: BlackRock Praises Ripple—What It Means for XRP Investors
Striking the Right Balance
Kraken’s warning underscores a growing concern: the UK’s cautious regulatory framework could drive crypto innovation abroad. While investor protection is essential, overregulation risks suffocating legitimate growth. The next phase of UK crypto policy must find balance — ensuring safety without sacrificing innovation.
