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【UK financial regulator launches consultation on DeFi guidance and crypto regulations】

The UK Financial Conduct Authority (FCA) announced the launch of two consultation periods, addressing respectively how businesses using decentralized finance (DeFi) should comply with its guidance and exemptions for certain cryptoassets resulting from recent legislative changes. In an announcement published on Wednesday,FCA opened a consultation period aimed at helping DeFi businesses comply with the financial regulator’s rules on anti-money laundering and financial crime. The agency also announced a consultation on regulatory exemptions for cryptoassets, citing recent UK legislation. Regarding DeFi，FCA stated that the proposed guidance is intended to clarify existing rules rather than establish new policy. The UK Cryptoasset Business Council said in response to the consultation that UK is one of the most innovative areas of financial services. The UK can still achieve the right balance—clear boundary rules, proportionate expectations, and a framework that enables responsible innovation to take root here rather than move elsewhere…DeFi needs to handle this matter properly. The crypto regulatory exemption refers to FCA a regulatory regime previously announced by FCA covering stablecoin holding arrangements and reserve assets, which is expected to take effect from 2027 October.FCA opened the application channel for crypto entities on September 30, and businesses seeking compliance must submit applications before the February 28, 2027 deadline.