UPDATE: UK FCA targets DeFi integrations under GC26/7 and CP26/36 rules
CIE News ·
Update to UK FCA publishes perimeter guidance paper ahead of October 2027 crypto rules
Based on an official regulatory or court document.
UK FCA consultation papers GC26/7 and CP26/36 mandate that regulated firms accessing DeFi protocols must meet standard compliance rules ahead of an October 25, 2027 enforcement deadline.
The UK Financial Conduct Authority linked its CP26/36 perimeter guidance to consultation paper GC26/7 to specify compliance obligations for regulated financial entities accessing DeFi protocols. As previously reported when the FCA issued CP26/36 regarding crypto perimeter exclusions, the regulator is clarifying which digital asset services require authorization. The new details make clear that non-custodial and intermediary-light architectures do not exempt businesses from risk mitigation when offering access to automated, smart-contract-driven systems.
Regulated entities that route customers to decentralized finance protocols remain accountable for operational resilience under SYSC 15A, compliance and financial crime controls under SYSC 6, and UK Money Laundering Regulations, crypto.news reported. While limited exclusions exist for proprietary trading, temporary settlement setups, and specific technical service providers, using decentralized infrastructure does not inherently remove an activity from supervision.
Both consultation papers are accepting industry feedback until November 18, 2026. The regulator plans to release its finalized guidance in January 2027, with formal enforcement scheduled to begin on October 25, 2027.
Key facts
- Enforcement starts Oct 25, 2027
- Consultation ends Nov 18, 2026
- Covers GC26/7 and CP26/36
- No DeFi compliance exemption
Read the original at fca.org.uk