ChainCatcher report: The UK Financial Conduct Authority (FCA) has launched two parallel consultations seeking industry input on the scope of applicability of DeFi and its upcoming regulatory framework for cryptoassets. Both consultations close on November 18, 2026; the FCA plans to issue final guidance in January 2027 after reviewing feedback. The first consultation primarily targets FCA-regulated businesses that use DeFi protocols or facilitate access to them. This guidance does not aim to introduce a new rulebook but rather to clarify how existing regulatory requirements apply when businesses provide services through highly automated, distributed ledger-based systems. The second consultation examines the scope of cryptoasset regulation—i.e., the “regulatory boundary”—in light of recent legislative changes.
UK FCA Launches Consultation on DeFi Guidelines and Crypto Regulatory Framework
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Summary
The UK FCA has launched two consultations to gather feedback on its upcoming crypto asset regulatory framework and DeFi guidelines. Both consultations close on November 18, 2026, with final guidance expected in January 2027. One consultation addresses how FATF guidelines apply to DeFi protocols used by regulated firms. The other reviews the compliance framework for crypto assets under new legislation.
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