The UK Financial Conduct Authority (FCA) has launched two consultations on cryptoasset regulations, both closing on November 18, 2026. The first, CP26/36, proposes updates to the cryptoasset perimeter guidance in Chapter 18 of the Perimeter Guidance Manual (PERG 18), aligning it with recent legislative changes. The second, GC26/7, seeks input on how operational resilience and financial crime rules apply to firms interacting with decentralized finance (DeFi) protocols.
CP26/36 introduces draft guidance on the 'technical services exclusion,' which exempts firms merely providing technical services from certain regulatory requirements. The FCA outlines factors that determine whether a service is 'merely technical,' such as the absence of discretion or substantive intermediation. The guidance also clarifies the distinction between qualifying stablecoins and e-money, emphasizing a case-by-case assessment.
The consultation includes new draft guidance on DeFi, addressing the concept of 'True DeFi' and how it affects regulatory perimeter analysis. The FCA notes that decentralization, automation, or smart contracts alone do not exempt activities from regulation. Instead, the focus remains on whether individuals are carrying on regulated activities through these arrangements.
Additionally, CP26/36 provides guidance on the exclusion for firms trading qualifying cryptoassets on their own account, clarifying that market makers on qualifying cryptoasset trading platforms (QCATPs) can rely on this exclusion. The FCA also outlines features that indicate a service is being provided to a counterparty, which would disqualify a firm from the exclusion.