Daily Compliance Brief — FCA Opens Consultation on DeFi Financial Crime Guidance

October 22, 2026

Signal

On October 21, 2026, the UK Financial Conduct Authority (FCA) opened consultation GC26/7, proposing guidance on how firms providing financial services through decentralised finance (DeFi) should address financial crime and operational resilience. The FCA’s published guidance consultation also covers compliance with the UK Money Laundering Regulations.

The proposed guidance is intended to help FCA-regulated firms interpret existing requirements in DeFi settings, where automation, interoperable technology and the possible absence of traditional intermediaries can complicate risk management. The consultation closes on November 18, 2026, with final guidance planned for January 2027.

The FCA has presented the document as proposed guidance, not a new final rule. Its practical significance will depend on how firms assess the recommendations against their existing regulatory obligations and DeFi-related activities.

Why it matters

Firms providing financial services through DeFi should assess whether their current financial crime frameworks adequately address the risks associated with automated transactions, limited intermediary involvement and complex service arrangements. The review should cover customer and counterparty risk assessment, transaction monitoring, escalation and accountability for controls.

Compliance and operational risk teams can compare the proposed guidance with existing procedures, identify gaps and document the rationale for any changes. The consultation remains open, so firms should distinguish current binding obligations from measures described in the FCA’s proposed guidance.