The UK Financial Conduct Authority opened consultation CP26/36 on proposed guidance about when certain crypto activities fall outside regulation. It covers temporary settlement arrangements, qualifying stablecoin holding in payment processing, some proprietary trading and technical services that provide access to another provider or a decentralised protocol.
The FCA is not proposing to exempt every DeFi front end. Whether an exclusion applies depends on the activities and facts, and the guidance is not final. Responses are due November 18, with final guidance expected in January 2027. The broader UK crypto regulatory regime is scheduled to apply from October 25, 2027.
