UK FCA publishes two consultation papers clarifying DeFi and crypto regulatory boundaries

On October 22, citing an official announcement, the UK Financial Conduct Authority (FCA) has published two consultation papers. The DeFi guidance (GC26/7) aims to help regulated firms using DeFi meet operational resilience, financial crime and anti-money laundering requirements, with the FCA stating it intends to clarify existing rules rather than create new policy; the cryptoasset regulatory perimeter guidance (CP26/36) sets out exemptions under the new regime, including temporary settlement arrangements, temporarily holding UK-qualified stablecoins for payment transactions, proprietary trading, and technical services that merely provide access to third-party services or decentralized protocols, helping firms determine whether they need FCA authorization. Both consultations close on November 18, with the FCA planning to publish final guidance in January 2027, and the new regulatory regime taking effect on October 25, 2027.