UK FCA Seeks Feedback on DeFi Guidance, Crypto Rule Perimeter

The U.K. Financial Conduct Authority is seeking feedback as it moves to clarify anti-money laundering obligations for decentralized finance, or DeFi, operators and define the scope of crypto-asset regulations that apply to them.

Cointelegraph reported on Oct. 21 that the FCA had published draft guidance to help DeFi businesses comply with anti-money laundering and financial crime rules. It is also separately gathering views on exemptions from crypto-asset regulations to reflect recent legislation.

The FCA said the effort is intended to clarify existing rules rather than introduce new policy. The DeFi guidance focuses on how firms should meet obligations already in place.

The industry has called for clearer regulatory boundaries and compliance standards. The U.K. Cryptoasset Business Council said DeFi is one of the most innovative areas in financial services and that clear regulatory boundaries and balanced expectations are needed to create a framework for responsible innovation in the U.K.

Discussion of the exemption scope is tied to the U.K.'s crypto-asset regulatory framework, which is scheduled to take effect in October 2027. The framework includes rules on stablecoin custody and reserve assets.

The FCA has been accepting applications from crypto-asset businesses since Sept. 30. The deadline for applications under the new framework is Feb. 28, 2027.