U.K. FCA Draft Guidance Says Some Crypto Trade Routing May Require Authorization

The U.K. Financial Conduct Authority proposed guidance that could bring some software-driven crypto trade routing within regulated arranging activity, affecting whether apps that select venues for customers need authorization. The draft interprets an exclusion for technical services under arranging activity rules. Assessing prices or liquidity and choosing where to route an order may indicate that a provider exercises discretion, but no single factor determines the outcome. The analysis depends on how the service is designed and operated. Some decentralized finance (DeFi) aggregators could fall within the regime, including services that promote best execution.