Key facts
- FCA consultations aim to clarify existing rules for DeFi companies on money laundering and financial crime.
- Consultations also address exclusions from cryptoasset regulation following recent legislative changes.
- Applications for crypto entities opened September 30, with a February 28, 2027 compliance deadline.
- The new crypto regulatory regime is expected to be enforced starting in October 2027.
The UK's Financial Conduct Authority (FCA) has initiated two consultation periods concerning decentralized finance (DeFi) and cryptoasset regulation. The first consultation aims to clarify existing rules for DeFi companies regarding money laundering and financial crime, emphasizing that it seeks to clarify rather than establish new policy. A second consultation addresses "exclusions from cryptoasset regulation," prompted by recent legislative changes in the UK. The FCA also revealed details of its new crypto regulatory regime, including stablecoin holding arrangements and reserve assets, which is slated for enforcement starting in October 2027. Applications for crypto entities under this regime opened on September 30, with a compliance deadline of February 28, 2027.