The UK Financial Conduct Authority (FCA) has launched two consultation processes focused on the decentralized finance (DeFi) sector and crypto asset regulations. The first initiative aims to clarify how DeFi companies can adhere to existing anti-money laundering and financial crime prevention standards. The regulator emphasized that these guidelines are intended to interpret current rules rather than introduce new policies.
The second consultation addresses potential regulatory exclusions for specific crypto assets, following recent legislative updates in the United Kingdom. These discussions are part of a broader regulatory framework that includes new requirements for stablecoin holding arrangements and reserve assets. The FCA expects these comprehensive rules to be fully enforced starting in October 2027.
The agency began accepting applications from crypto-related entities on September 30, 2026. Companies operating in the sector must submit their applications by the February 28, 2027 deadline to ensure compliance with the new regime. The UK Cryptoasset Business Council noted that the FCA must balance clear perimeter rules with a framework that supports innovation within the country.
