LONDON — The UK Financial Conduct Authority announced two consultation periods on DeFi operations and crypto asset exclusions, seeking input on how decentralized finance companies can comply with existing anti-money laundering and financial crime rules.
The FCA simultaneously opened a separate consultation on exclusions from its cryptoasset regulation framework following recent legislative changes. The move follows the regulator's launch of applications for its new crypto regulatory regime.
The broader framework, which covers stablecoin holding arrangements and reserve assets, takes effect in October 2027. Crypto entities can submit applications starting Sept. 30, with a deadline of Feb. 28, 2027.
On DeFi guidance, the FCA said it intends to clarify existing rules rather than introduce new policy, aiming to provide greater certainty for protocols operating in the UK.
The UK Cryptoasset Business Council said DeFi represents "among the most innovative parts of" financial services and noted the UK's opportunity to establish a balanced framework that includes clear perimeter rules and proportionate expectations. Such an approach aims to foster responsible innovation domestically and prevent projects from migrating to other jurisdictions.
