The UK Financial Conduct Authority (FCA) has published two key regulatory consultations—GC26/7 and CP26/36—on 21 October 2026 to define how decentralised finance (DeFi) will be treated under the country’s forthcoming cryptoasset regime. The proposals clarify how authorised firms should manage operational risks, compliance obligations, and financial crime prevention when dealing with decentralised protocols.
The watchdog is establishing specific carve-outs for purely technical services and transient settlements, aiming to avoid sweeping in infrastructure providers that do not exercise meaningful control. The framework extends consumer protection and resilience standards from traditional finance into automated, decentralised environments, creating a benchmark for fintech and institutional participants.
The consultation period for both papers remains open until 18 November 2026. Firms currently operating in the UK must submit formal authorisation applications to the regulator before 28 February 2027, ahead of the overarching authorisation regime taking effect in October 2027.
