Switch to seedless. Get 30% off with SWITCH30 till Oct 26FCA consults on DeFi and crypto regulation in the UK
4.9 Regulation The FCA is consulting on DeFi and crypto regulation, focusing on compliance and authorization. Feedback is open until Nov 18, 2026, with new rules set for October 2027.
The UK Financial Conduct Authority (FCA) has released two consultations, GC26/7 and CP26/36, to clarify the regulatory framework for decentralized finance (DeFi) and cryptoassets ahead of the new regime starting in October 2027. These consultations invite industry feedback on how current requirements—such as operational resilience, compliance, internal audit, and financial crime prevention—apply to firms utilizing decentralized protocols. The FCA stresses that the use of automation, smart contracts, or distributed ledger technology does not exempt firms from authorization requirements. Whether authorization is needed depends on the specific activities performed. The consultations also discuss regulatory exclusions for certain cryptoassets and introduce carve-outs for purely technical services and transient settlements. The public can submit feedback until November 18, 2026, and firms must apply for formal authorization by February 28, 2027. These measures aim to enhance legal clarity, strengthen consumer protection, and foster responsible innovation in the UK crypto sector.
