UK FCA Consults on DeFi Rules and Crypto Exclusions
The UK FCA has opened consultations on anti-money-laundering guidance for DeFi firms and proposed exclusions from the country’s cryptoasset regulatory framework.
The UK Financial Conduct Authority has opened consultations on guidance for decentralized finance firms and on proposed exclusions from cryptoasset regulation following recent legislative changes.
In a notice published Wednesday, the FCA outlined guidance to help DeFi companies comply with rules on money laundering and financial crime. The regulator described the guidance as a clarification of existing requirements rather than new policy.
The FCA did not provide a closing date for the consultation on the DeFi guidance.
The second consultation covers crypto assets and activities that could be excluded from the UK’s cryptoasset regulatory framework. The FCA linked the proposal to recent changes in UK legislation.
The consultations follow the FCA’s launch of a new crypto regulatory regime, which is expected to take effect in October 2027. The framework includes rules for stablecoin holding arrangements and reserve assets.
The FCA began accepting applications from crypto companies on Sept. 30. Firms seeking to comply with the new rules have until Feb. 28, 2027, to submit applications.
The UK Cryptoasset Business Council described decentralized finance as one of the most innovative areas of financial services. The council called for clear rules and proportionate expectations, and urged the FCA to create conditions that allow responsible innovation to develop in the United Kingdom rather than move to other jurisdictions.
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