UK FCA Targets DeFi Risks as New Crypto Regulatory Framework Takes Shape

The UK Financial Conduct Authority is sharpening its approach to decentralised finance as the country prepares for a much broader regulatory regime covering cryptoasset businesses. The regulator has opened a consultation on guidance for firms providing financial services using decentralised finance . Rather than creating a separate regulatory system specifically for decentralised protocols, the FCA is focusing on how existing obligations around operational resilience, financial crime and anti-money laundering should apply when regulated companies interact with DeFi. The move offers an important preview of how the UK intends to treat decentralised financial infrastructure once its new crypto regime becomes fully operational. FCA Turns Its Attention to DeFi The FCA published its DeFi guidance consultation, known as GC26/7, on October 21.

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