DeFi Education Fund Advocates for Clearer Crypto Regulations in the UK
- The DeFi Education Fund (DEF) urged the U.K.’s Financial Conduct Authority (FCA) to define “control” based on unilateral authority over user funds.
- DEF’s response to the FCA consultation emphasizes that software developers should not face intermediary obligations if they lack custody or transactional authority.
- The group supports a control-based regulatory approach, linking it to operational powers like initiating transactions or modifying protocol parameters.
- DEF argues that cybersecurity risks are not exclusive to blockchain and highlights the transparency benefits of public blockchains against illicit finance.
- The FCA aims to regulate a wide range of crypto activities as part of its evolving digital asset framework in the UK.
The DEF’s advocacy is crucial as it seeks to ensure that regulatory frameworks do not inadvertently impose burdens on DeFi developers who do not control user funds or transactions. This approach could shape how decentralized finance is integrated into the broader financial system.
By emphasizing a functional definition of control, DEF aims to protect developers from unnecessary regulations while supporting effective oversight of crypto activities in the UK.(Source)
