UK’s FCA Opens DeFi Consultations Ahead of 2027…
By Damilola Esebame
AI summary of the source article
The UK Financial Conduct Authority has launched two consultations detailing how decentralized finance businesses will be regulated under the country's cryptoasset regime taking effect on 25 October 2027. The proposals address compliance obligations and proposed perimeter exemptions.
Why it matters
A defined regulatory perimeter and final guidance early next year will give DeFi firms roughly nine months to prepare before full supervision begins in October 2027.
Key facts
- Consultations GC26/7 and CP26/36 opened on 21 October and run until 18 November, with final guidance expected in January 2027.
- The FCA affirmed that firms using decentralized protocols remain fully responsible for compliance, including operational resilience and financial crime controls.
- Proposed exemptions include temporary settlement arrangements, temporary holding of qualifying UK stablecoins during payments, and proprietary trading.
Source excerpt · FinanceFeeds
The United Kingdom's Financial Conduct Authority (FCA) has launched two public consultations that will define how decentralized finance (DeFi) businesses operate under the country's incoming cryptoasset regime, set to take effect on 25 October 2027. How the FCA Plans to Regulate DeFi Businesses Both consultations opened on 21 October and will accept industry responses until 18 November, with final…