UK financial watchdog opens consultations for DeFi guidance, crypto laws

The UK Financial Conduct Authority consultations came just weeks after the agency opened applications for companies under its new crypto regulatory regime.The UK’s Financial Conduct Authority (FCA) announced two consultation periods for how companies using decentralized finance can comply with its guidance, and exclusions for certain crypto assets following “recent legislative changes.”In a Wednesday notice, the FCA opened consultation periods for helping DeFi companies comply with the financial watchdog’s rules on money laundering and financial crime. The agency also announced a consultation for “exclusions from cryptoasset regulation,” citing recent legislation in the country.Regarding DeFi, the FCA said that the proposed guidance “seeks to clarify existing rules rather than establish new policy.”“DeFi sits among the most innovative parts of [Financial Services],” said the UK Cryptoasset Business Council in response to the consultations. “The UK can still strike the right balance - clear perimeter rules, expectations that stay proportionate, and a framework that lets responsible innovation take root here instead of migrating elsewhere [...] the FCA needs to get this right.”The cr...