The UK Financial Conduct Authority announced two distinct consultation periods for its upcoming cryptoasset regulatory regime. One addresses how decentralized finance companies can comply with existing money-laundering and financial-crime rules. The second focuses on specific exclusions from cryptoasset regulation, citing recent legislative changes.
The FCA began accepting applications for its new crypto regulatory framework in late September, with enforcement expected to start in October 2027. The regime will establish guidance for stablecoin reserve arrangements and held assets.
The FCA stated its proposed DeFi guidance aims to clarify existing rules without establishing new policy, signaling an effort to integrate DeFi operations within the established financial-crime prevention framework.
The UK Cryptoasset Business Council stressed the need for clear perimeter rules and proportionate compliance expectations. The Council warned that overly restrictive frameworks risk pushing innovation to other jurisdictions, placing responsibility on the FCA to implement rules effectively.
Companies can submit applications for the new regulatory regime until Feb. 28, 2027.
