UK FCA Opens DeFi Compliance Consultation for Crypto Assets

The UK Financial Conduct Authority has launched a consultation seeking industry feedback on proposed compliance guidelines for decentralised finance activity and potential regulatory exemptions for crypto assets, marking a significant step in the regulator’s effort to build a formal framework for DeFi within its supervisory perimeter. The consultation, as the FCA has structured similar exercises in the past, does not create binding obligations. A consultation is a formal request for public and industry comment on proposed rules or guidance; only after reviewing submissions and publishing a policy statement would any resulting requirements take effect.