The UK Financial Conduct Authority (FCA) has launched Guidance Consultation GC26/7, seeking industry feedback on how firms using or interacting with decentralized finance (DeFi) must meet existing financial crime and operational resilience requirements. $MAGMA
Key Takeaways
* Clarification, Not New Policy: The FCA stresses that the draft guidance does not invent a fresh rulebook. Instead, it clarifies how current rules—such as the Money Laundering Regulations (MLRs) and senior management arrangements (SYSC)—apply when traditional financial services intersect with DeFi. $AGT
* Target Audience: The guidance is primarily aimed at FCA-authorized firms (or those seeking authorization) that utilize or offer access to DeFi protocols, front-ends, or tokenized assets. $IRYS
* Closing the Loophole: The move signals that firms cannot use the "decentralized" label to sidestep anti-money laundering (AML), customer due diligence, or operational risk controls.
Timeline & Next Steps
* Consultation Window: Comments and feedback are open until November 18, 2026.
* Final Guidance Expected: January 2027.
* Broader Regime Context: The consultation runs alongside parallel perimeter guidance (CP26/36) as the UK prepares for its broader crypto regulatory framework rolling out through 2027.
Key Takeaways
* Clarification, Not New Policy: The FCA stresses that the draft guidance does not invent a fresh rulebook. Instead, it clarifies how current rules—such as the Money Laundering Regulations (MLRs) and senior management arrangements (SYSC)—apply when traditional financial services intersect with DeFi. $AGT
* Target Audience: The guidance is primarily aimed at FCA-authorized firms (or those seeking authorization) that utilize or offer access to DeFi protocols, front-ends, or tokenized assets. $IRYS
* Closing the Loophole: The move signals that firms cannot use the "decentralized" label to sidestep anti-money laundering (AML), customer due diligence, or operational risk controls.
Timeline & Next Steps
* Consultation Window: Comments and feedback are open until November 18, 2026.
* Final Guidance Expected: January 2027.
* Broader Regime Context: The consultation runs alongside parallel perimeter guidance (CP26/36) as the UK prepares for its broader crypto regulatory framework rolling out through 2027.