The United Kingdom's Financial Conduct Authority has initiated two consultation periods on decentralized finance operations and crypto asset exclusions as it prepares to enforce a new regulatory regime in October 2027.
The first consultation focuses on guidance for DeFi companies to comply with existing rules related to money laundering and financial crime. The FCA said the guidance clarifies current regulations rather than establishing new policy.
The second consultation addresses exclusions from broader crypto asset regulation. The new regime includes rules on stablecoin holding arrangements and reserve assets. The FCA opened applications for crypto entities seeking compliance on Sept. 30, with a deadline of Feb. 28, 2027.
The UK Cryptoasset Business Council responded to the consultations in a statement: "The UK can still strike the right balance — clear perimeter rules, expectations that stay proportionate, and a framework that lets responsible innovation take root here instead of migrating elsewhere. The FCA needs to get this right."
