Overview
- The government and the FCA are finishing a crypto regime under the Financial Services and Markets Act, with rules due in 2026 and full rollout planned for 2027.
- The watchdog will extend oversight beyond anti–money laundering checks to cover trading venues, brokers, lending, and token staking.
- DeFi protocols count as out of scope only if no person is carrying on the activity as a business, and the FCA will look for any identifiable controller before applying rules.
- Regulators will gauge control through factors like who sets parameters, who captures fees, how governance works, and whether a foundation or team steers the protocol.
- Firms that serve UK consumers will need a local licence, overseas providers may avoid full approval only if they steer clear of retail users, and the plan aligns with EU MiCA and emerging US proposals.