FCA Launches Two Consultations Focusing on DeFi Guidance and the Boundaries of Crypto Asset Regulation

Odaily reports: The UK Financial Conduct Authority (FCA) has launched two parallel consultations seeking industry input on DeFi guidance and the scope of application of the upcoming crypto asset regulatory framework. Both consultations will close on November 18, 2026, and the FCA plans to publish final guidance in January 2027 after reviewing feedback from all parties.

The first consultation is aimed at FCA-regulated firms that use DeFi protocols or facilitate access to DeFi protocols, with the goal of clarifying how existing regulatory requirements apply to firms providing services through highly automated, distributed ledger-based systems, rather than introducing a new rulebook. The second consultation explores the scope of application of crypto asset regulation—the "regulatory perimeter"—in light of recent legislative changes.