Add as a preferred source on GoogleUK FCA Seeks Input on DeFi Guidance for Regulated Firms
The draft would not add new obligations and covers smart-contract, bridge, oracle and third-party risks. Comments are due Nov. 18.
The U.K.'s Financial Conduct Authority (FCA) published draft guidance Oct. 21 for regulated firms using decentralized finance to provide financial services, clarifying how existing operational-resilience and financial-crime rules apply.
Under the proposal, designated GC26/7, the FCA outlines risks tied to smart contracts, cross-chain bridges, oracles and dependencies on outside service providers. It also addresses anti-money-laundering controls, including customer due diligence and transaction monitoring.
The guidance is meant to explain how existing requirements apply, rather than create new obligations. DeFi use or reliance on smart contracts does not automatically exempt a firm from regulatory licensing requirements.
The draft is aimed at regulated institutions using DeFi to provide financial services. It covers both the operational systems behind those services and safeguards against financial crime.
Decentralized exchange trading represented about 14% to 19% of global crypto spot volume from January through August 2026.
Responses are due Nov. 18, and final guidance is planned for the first quarter of 2027.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.