UK Financial Authority Opens Consultations on DeFi Rules

The UK Financial Conduct Authority has launched two public consultation periods to address the decentralized finance sector. The goal is to clarify how companies in the industry must follow existing guidelines regarding financial crime and money laundering.

The regulator also opened discussions on specific exclusions within cryptoasset regulations. These consultations follow the agency's recent move to begin accepting registration applications for firms under the country's new supervisory regime.

The FCA stated that the proposed guidance seeks only to clarify existing rules rather than create new policies. The UK Cryptoasset Business Council highlighted the need to maintain a balance that allows for local innovation without driving businesses away.

The British regulatory regime includes rules for stablecoins and reserve assets set to take effect in October 2027. Companies in the sector have until February 2027 to comply with the requirements established by the agency.

The registration process for entities operating with digital assets officially began on September 30. The initiative reflects the British government's effort to structure the digital asset market within a defined legal perimeter.