U.K. Regulator Opens Consultations on DeFi and Crypto Framework Scope

The U.K. Financial Conduct Authority (FCA) opened two consultations on decentralized finance guidance and the scope of its upcoming crypto asset framework, with responses due Nov. 18, 2026.

The first consultation covers FCA-regulated firms that use decentralized finance (DeFi) protocols or help others access them. It examines how existing requirements apply to services delivered through highly automated systems built on distributed ledger technology. The DeFi consultation seeks to clarify how existing requirements apply without creating new rules.

The second consultation examines the regulatory perimeter — the scope of the upcoming crypto asset framework — after recent legislative changes. The FCA plans to review responses to both consultations before publishing final guidance in January 2027.