Bivu Das, Managing Director of Kraken UK, stated that Britain must accelerate regulatory clarity surrounding tokenized assets and stablecoins to avoid falling behind rival financial hubs. Speaking at Zebu Live in London on Tuesday, Das indicated that the UK remains one of Kraken’s largest global markets but emphasized the need for policymakers to "move faster."
Das characterized the UK’s consultative approach as "the right one," but suggested that regulators should permit firms to test new products, such as tokenized securities, in the market more rapidly. He commented, "We need to be brave on the things that we know will make a difference. Maybe there’s light at the end of the tunnel to do this relatively quickly."
He highlighted Kraken’s introduction of xStocks in the European Union earlier this year. This tokenized asset product, which is not yet available in the UK, has been attracting millions in daily inflows. The product allows investors to gain exposure to listed equities through blockchain-based wrappers, a format Das described as "a stepping stone to something super interesting."
Kraken’s UK chief says regulators must give firms room to innovate with tokenized assets or risk seeing capital and talent flow to more agile markets.
Regulators Face Industry Pressure
Das noted that the Financial Conduct Authority (FCA) has demonstrated a willingness to engage with the crypto industry, but the Bank of England has been "less open to experimentation." He pointed to the Bank of England's proposal to cap corporate stablecoin exposure, a measure that some industry participants view as an effective prohibition on institutional use.
The urgency for faster action arises amidst political shifts. Das observed that the momentum for crypto regulation, which had gained traction under the previous Conservative government, slowed following the 2024 snap election and must now be re-established under the new Labour administration. He remarked, "Interest rose briefly before stalling," and added that education and dialogue are crucial for formulating correct policies.
Despite these delays, Das expressed that the UK now possesses a clearer path towards comprehensive crypto oversight. This oversight is expected to encompass custody, trading infrastructure, and cross-border liquidity—areas he believes have been previously overlooked by traditional regulators. He concluded, "These are the nuts and bolts of market structure. We just need to move faster."
Kraken’s UK Market and New Neobank Push
The UK continues to be Kraken’s second-largest market outside the United States, and the exchange is expanding its presence despite more stringent local promotion rules. Das reported that approximately 20% of UK adults now own crypto, deeming this "pretty significant" given the recent restrictions on advertising and financial promotions.
Kraken has recently launched Krak, a neobank-style application that integrates trading with payment and banking functionalities. This app will feature debit cards for both UK and European users, enabling them to receive salaries, conduct cross-border transfers, and earn stablecoin yields. Das stated that the objective is to provide customers with "new ways to interact with crypto beyond traditional trading."
The company has also enhanced its consumer application to simplify the onboarding process in response to increased retail demand. Although tokenized stocks are not yet available in the UK, Kraken is actively preparing for a future where blockchain-based financial products are integrated into mainstream banking systems.
With new products like Krak and xStocks, Kraken is positioning for a regulated tokenization era — but says the UK must move faster to stay competitive.
Industry Resilience After Market Turbulence
Reflecting on the market crash and liquidations that occurred on October 10, Das observed that the industry demonstrated greater resilience compared to previous downturns. He stated, "If you had the same thing five years ago, you’d have seen the failure of a number of institutions. The market now has more longevity and strength than it used to."
Kraken's focus on regulatory engagement and infrastructure development aligns with a broader trend among global exchanges aiming for stability in anticipation of the next growth cycle. Das mentioned that the exchange continues to hold regular meetings with UK regulators and political figures to foster understanding of digital assets, even as other jurisdictions like the EU and UAE are proceeding more rapidly with the adoption of rules for tokenized markets.
Das concluded, "The UK has the expertise, the demand, and the market depth. What it needs now is the speed."