UK’s FCA Opens Consultation on DeFi Rules Ahead of 2027 Crypto Regime

The UK Financial Conduct Authority has opened a public consultation on decentralized finance regulation. The move is part of broader preparations for a comprehensive crypto regulatory regime due to take effect in 2027. The FCA is asking market participants, developers, and the public to weigh in on how DeFi protocols should be classified under UK law. Regulators globally have struggled to define where decentralized systems fit within frameworks built for centralized intermediaries. DeFi platforms often lack a single operator, custodian, or clear point of accountability, which complicates traditional regulatory approaches. The consultation specifically seeks feedback on regulatory scope.