UK watchdog opens consultations on DeFi guidance and crypto rules

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The UK Financial Conduct Authority (FCA) has opened two consultations covering guidance for decentralised finance (DeFi) businesses and exclusions from cryptoasset regulation following recent legislative changes.

The DeFi consultation seeks to clarify how existing rules on money laundering and financial crime apply to businesses in the sector. The FCA said the proposed guidance aims to explain current requirements rather than introduce new policies.

The second consultation concerns which cryptoassets and activities should be excluded from the regulatory framework. The FCA is preparing a new regime covering areas including stablecoin arrangements and reserve assets, with the rules expected to take effect in October 2027.

The regulator opened applications for crypto businesses on 30 September 2026. Firms seeking authorisation under the new regime must apply by 28 February 2027.