The UK Financial Conduct Authority (FCA) has launched two consultation periods to help decentralized finance (DeFi) companies comply with its rules on money laundering and financial crime. The move comes weeks after the agency began accepting applications for companies under its new crypto regulatory regime.
The FCA’s proposed guidance aims to clarify existing rules rather than introduce new policies. The agency also opened a consultation for exclusions from cryptoasset regulation, citing recent legislative changes in the country.
The UK Cryptoasset Business Council welcomed the consultations, stating that DeFi represents one of the most innovative parts of financial services. The council emphasized the need for clear perimeter rules and a framework that encourages responsible innovation within the UK.
The consultations follow the FCA’s announcement of a regulatory regime for stablecoin holding arrangements and reserve assets, set to be enforced starting in October 2027. Applications for crypto entities opened on September 30, with a deadline of February 28, 2027, for companies seeking compliance.