FCA consultation feedback deadline on DeFi AML guidance and crypto-asset exemptions

The UK Financial Conduct Authority will close feedback on two consultations on 18 November 2026. They cover anti-money laundering obligations for decentralized finance (DeFi) operators and exemptions for certain crypto assets. No specific coins are tied to the deadline.

What is happening

The FCA opened two consultation periods ahead of the UK crypto regime. One concerns draft guidance on how businesses using DeFi should comply with existing rules, including anti-money laundering obligations. The other concerns exemptions for certain crypto assets, which the regulator links to "recent legislative changes." Feedback on both is due by 18 November 2026.

The draft guidance states that the use of software, smart contracts or distributed governance does not on its own determine whether someone is carrying on a regulated crypto activity that requires authorization. The FCA said the analysis "always turns on the facts" and that the substance of an arrangement matters more than the terminology used to describe it. The regulator describes the DeFi guidance as a clarification of existing rules rather than new policy.

The exemptions consultation addresses new exclusions for technical service providers, stablecoin backing assets, proprietary trading and market making. The FCA also connected the proposals to stablecoin custody and reserve assets. Sources give slightly different dates for the wider regime: most cite 25 October 2027, while one mentions 1 October 2027. A 28 February 2027 application deadline applies to crypto-asset businesses.

Why it matters

For DeFi teams, protocol developers and service providers operating in or toward the UK market, the guidance indicates that decentralized architecture alone may not exempt an arrangement from authorization. The outcome of the consultation could shape how the FCA assesses who is responsible for compliance in decentralized setups. The UK Cryptoasset Business Council has argued that clear regulatory boundaries are needed to support responsible innovation in the sector.

For holders and traders, the practical relevance is indirect. The final scope of exemptions, particularly for stablecoin backing assets and market making, may influence how firms structure their UK activity ahead of the regime. Final rules may differ from the drafts, and what changes will depend on the feedback the FCA receives and how it responds.

Key details

• Date: 18 November 2026 (feedback deadline)
• Project: UK Financial Conduct Authority
• Coins: none specified
• Category: Regulatory deadline
• Status: Confirmed
• Source: newscord.org, "UK FCA seeks feedback on DeFi AML guidance and crypto-asset rule scope"