UK FCA Launches Consultation on DeFi Compliance Guidance and Cryptoasset Regulatory Exemptions

Odaily reports: The UK Financial Conduct Authority (FCA) has announced the launch of two consultations, covering guidance for decentralized finance (DeFi) firms on compliance with anti-money laundering and financial crime rules, as well as arrangements to exclude certain cryptoassets from the regulatory perimeter under recent legislative changes.

The FCA stated that the proposed DeFi guidance is intended to clarify existing rules rather than create new policy. The FCA is also consulting on cryptoasset regulatory exemptions.

The UK Cryptoasset Business Council said that DeFi is one of the most innovative areas of financial services, and that the UK should establish clear and proportionate regulatory boundaries to keep responsible innovation developing domestically.

The FCA opened applications for firms under the new crypto regulatory regime on September 30, with applicant firms required to complete compliance by February 28, 2027. The regime covers stablecoin holding arrangements and reserve assets and is expected to take effect from October 2027. (Cointelegraph)