The UK’s Financial Conduct Authority has opened two consultations that could shape how decentralized-finance businesses comply with financial-crime rules and which cryptoassets fall outside parts of the country’s regulatory framework.
The move comes only weeks after the FCA began accepting applications from crypto companies under a new regime. According to Cointelegraph, the regulator announced the consultations in a Wednesday notice, describing them as part of its work following recent legislative changes.
Proposed guidance for decentralized finance
One consultation concerns companies and activities connected with decentralized finance, commonly known as DeFi. The term generally refers to financial services delivered through blockchain-based systems and smart contracts rather than through traditional intermediaries.
The FCA said its proposed guidance is intended to clarify how existing requirements on money laundering and financial crime apply to DeFi businesses. It emphasized that the document is designed to explain current rules, rather than create a new regulatory policy.
That distinction is important for firms trying to understand whether and how existing obligations apply to activities built around decentralized networks. The consultation gives affected businesses and other participants an opportunity to respond before the FCA finalizes its approach.
The UK Cryptoasset Business Council welcomed the consultations, calling DeFi one of the most innovative areas of financial services. The group said the UK needed clear boundaries for regulation, proportionate expectations and a framework that supports responsible innovation. It also warned that the FCA would need to get the approach right to avoid innovation moving to other jurisdictions.
Consultation on cryptoasset exclusions
The second consultation addresses “exclusions from cryptoasset regulation.” The FCA linked this work to recent legislation and to the broader regulatory framework it has set out for the sector.
That framework includes rules covering stablecoin holding arrangements and reserve assets. Stablecoins are cryptoassets designed to maintain a relatively stable value, while reserve assets are assets held to support such arrangements. The FCA’s regime is expected to be enforced from October 2027.
The consultation is therefore relevant to companies seeking clarity on which assets or activities are covered by the UK’s crypto rules and which may be excluded. The source material does not specify the individual assets or activities that would qualify for an exclusion.
Applications and current market picture
The FCA opened applications for crypto entities on September 30. Companies seeking to comply with the new rules have until February 28, 2027, to meet the stated deadline. The consultations add further detail to a regulatory process that is being developed ahead of the expected October 2027 enforcement date.
Moneyiar market data at 23:18-23:19 on October 22, 2026, showed mixed performance among the listed cryptoassets:
- JUST (JST): $0.1389221838, down 0.8% over 24 hours and up 5.5% over seven days.
- Ethereum Name Service (ENS): $5.4935410999, down 4.81% over 24 hours and 4.68% over seven days.
- Compound (COMP): $24.3332566187, down 5.24% over 24 hours and up 9.13% over seven days.
- Dog (Bitcoin) (DOG): $0.0009151463, down 2.88% over 24 hours and 3.37% over seven days.
The consultations do not themselves establish final rules. They indicate that the FCA is seeking input while the UK develops the detailed boundaries and compliance expectations of its cryptoasset regime.
