UK FCA Opens Consultation on DeFi Guidance GC26/7, Closes November 18
The UK Financial Conduct Authority published GC26/7, draft non-Handbook guidance on how firms using or offering access to DeFi protocols meet existing obligations, alongside CP26/36 on perimeter exclusions. Both close November 18, 2026; final guidance is due January 2027.
Firms that use or offer access to decentralised finance protocols now have a draft view from the UK Financial Conduct Authority on how their existing obligations apply. On Wednesday, October 21, 2026, the regulator published Guidance Consultation GC26/7 and asked for industry feedback. It does not create a fresh rulebook for DeFi.
The FCA said the proposed guidance "seeks to clarify existing rules rather than establish new policy." GC26/7 is non-Handbook guidance. It concentrates on operational resilience, compliance and financial crime controls, and points firms to SYSC 15A (operational resilience), SYSC 6 (compliance functions) and the Money Laundering Regulations (MLRs).
A second paper on the perimeter
GC26/7 runs alongside CP26/36, which clarifies new legislative exclusions from the regulated activities perimeter. The FCA framed that paper as a consultation on "exclusions from cryptoasset regulation," citing recent legislation. The exclusions relate to the FCA's wider crypto regime, which includes stablecoin holding arrangements and reserve assets and is scheduled to take effect in October 2027.
Both consultations close on November 18, 2026. The FCA plans to publish final guidance and recommendations in January 2027.
Where the jurisdiction line sits
The regulator says it will take a case-by-case approach. Its rules apply where there is an identifiable controlling entity, so genuinely decentralised activity may fall outside its reach. The target is intermediaries sitting between users and protocols.
For firms, the practical shift may be significant. Those that treat smart contract integrations as a product feature may now need to treat them as critical infrastructure with documented controls. Applying the MLRs could also mean tighter onboarding and transaction monitoring.
The UK Cryptoasset Business Council responded to the consultations by pressing for proportionality:
"The UK can still strike the right balance - clear perimeter rules, expectations that stay proportionate, and a framework that lets responsible innovation take root here instead of migrating elsewhere [...] the FCA needs to get this right."
UK Cryptoasset Business Council
The group also said "DeFi sits among the most innovative parts of [Financial Services]."
Timing pressure on applicants
The consultation lands inside the authorization process. The FCA opened its gateway for crypto firms on September 30, 2026, roughly three weeks before GC26/7 appeared, and accepts applications until February 28, 2027. The full regime is scheduled to go live on October 25, 2027.
Because final DeFi guidance only arrives in January 2027, applicants will work with draft expectations for part of that window. A four-week comment period is also short for an industry still debating what decentralisation means.
The FCA's position that this is clarification, not new policy, will be tested by how firms read the controlling-entity test. Where that line falls will shape which DeFi-facing businesses seek authorization before the regime starts.
UK-facing firms have until November 18 to make their case.
