LONDON
The UK Financial Conduct Authority initiated two consultation periods this week on DeFi compliance pathways and cryptoasset regulatory exclusions, part of a phased rollout toward October 2027 enforcement.
The first consultation addresses how decentralized finance protocols and operators can comply with existing anti-money laundering and financial crime guidance. The FCA stated the proposed guidance clarifies current rules rather than impose new requirements.
The UK Cryptoasset Business Council responded that DeFi represents one of the financial services sector's most innovative segments. The council urged the FCA to "strike the right balance" with clear regulatory perimeter rules and proportionate compliance expectations, enabling "responsible innovation" in the UK market.
The second consultation focuses on exclusions from the FCA's new cryptoasset regulatory regime, which covers stablecoin holding arrangements and reserve assets.
The consultations follow the FCA's opening of applications for crypto firms under its new regime on Sept. 30, with a deadline of Feb. 28, 2027. Full enforcement begins in October 2027.
