#UKAlgorithmicCryptoTradingAppsMayNeedFCAAuthorization
🇬🇧 BREAKING: UK FCA Says Crypto Apps That Choose Trade Routes May Need Authorization!
Big regulatory shift for DeFi & algo trading!
📌 Key Points (Draft Guidance - Oct 21):
🔹 If your app selects trading venues/routes based on price, liquidity, costs, execution speed = You may be ARRANGING crypto deals
🔹 Arranging = Needs FCA authorization from Oct 25, 2027
🔹 Impacts: DeFi aggregators & automated trading interfaces
🔹 Automation is NOT an excuse - algorithms execute choices made by providers
Where is the line?
✅ Interface only (just connects customer to 3rd party) = Exempt
❌ App that evaluates liquidity, recommends venues, determines execution = Needs authorization
⏰ Critical Deadlines:
- Existing UK crypto firms must apply: Sept 30, 2026 - Feb 28, 2027
- Feedback on proposals: By Nov 18, 2026
- Final guidance: Jan 2027 (or Spring 2027) - very little time before the Feb deadline!
FCA may grant extra time & offers pre-application support.
This could force many UK-facing DeFi apps to get licensed or change how they route trades!
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