LONDON
The UK Financial Conduct Authority announced two consultation periods for digital asset firms on how decentralized finance companies can comply with anti-money laundering rules and which cryptoassets fall outside its regulatory perimeter.
The FCA's Wednesday notice specified the first consultation aims to clarify existing money laundering and financial crime guidance for DeFi firms. The second addresses exclusions from cryptoasset regulation following recent legislative changes, including provisions for stablecoin holding arrangements and reserve asset requirements.
The regulatory regime is scheduled for enforcement starting in October 2027. The FCA began accepting applications from crypto entities on Sept. 30, with a compliance deadline of Feb. 28, 2027.
The UK Cryptoasset Business Council said in a statement: "DeFi sits among the most innovative parts of Financial Services. 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."
