Coinbase Europe policy head Katie Harries warned that the UK Financial Conduct Authority’s proposed crypto rules could prevent regulated platforms from giving customers access to decentralized finance (DeFi). No rule explicitly bans DeFi integrations, but Harries said a requirement to execute customer orders only on FCA-authorized venues could amount to a de facto ban because decentralized protocols have no person who could seek authorization.
Firms offering crypto services to UK customers will need FCA authorization from Oct. 25, 2027, and the regulator is consulting on how its rules would apply to services that interact with DeFi. Harries argued that the FCA should instead set clear disclosure and oversight requirements for regulated platforms. She said DeFi would remain accessible through decentralized routes even if regulated gateways could no longer offer it.
