The United Kingdom is finalizing a comprehensive cryptoasset regulatory framework that will come into force on 25 October 2027, with HM Treasury's draft statutory instrument laid before Parliament in December 2025 creating new regulated activities under the Financial Services and Markets Act 2000. The regime grants the Financial Conduct Authority broad powers over crypto trading platforms, intermediaries, lending, staking, and decentralised finance, requiring UK authorization for most crypto activities targeting local consumers while allowing overseas firms serving only institutional clients to remain outside full authorization. The framework includes a DeFi carve-out for truly decentralised services with no identifiable operator, but the FCA will probe protocols for controlling entities and apply full supervision to large DeFi front-ends, DAOs with clear controllers, and protocol teams that set parameters and capture fees. The UK approach aligns with MiCA-style oversight and converges with global regulatory trends including U.S. efforts like the CLARITY Act, applying a same-risk, same-outcome philosophy to crypto rather than creating DeFi-specific regulatory silos.
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