From Cointelegraph · By Turner Wright
The UK’s Financial Conduct Authority (FCA) announced two consultation periods for how companies using decentralized finance can comply with its guidance, and exclusions for certain crypto assets following “recent legislative changes.”
In a Wednesday notice, the FCA opened consultation periods for helping DeFi companies comply with the financial watchdog’s rules on money laundering and financial crime. The agency also announced a consultation for “exclusions from cryptoasset regulation,” citing recent legislation in the country.
Regarding DeFi, the FCA said that the proposed guidance “seeks to clarify existing rules rather than establish new policy.”
“DeFi sits among the most innovative parts of [Financial Services],” said the UK Cryptoasset Business Council in response to the consultations. “The UK can still strike the right balance - clear perimeter rules, expectations that stay proportionate, and a framework that lets responsible innovation take root here instead of migrating elsewhere [...] the FCA needs to get this right.”
The crypto regulation exclusions referred to the FCA’s reveal of a regulatory regime, including stablecoin holding arrangements and reserve assets, expected to be enforced starting in October 2027. The FCA opened applications for crypto entities on Sept. 30, with a Feb. 28, 2027 deadline for companies seeking to be in compliance with the rules.
Related: UK sanctions three crypto exchanges tied to Russian illicit funds