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.