UK FCA Seeks Input on DeFi Guidance for Regulated Firms
Photo: TokenPost
The U.K.'s Financial Conduct Authority (FCA) published draft guidance Oct. 21 for regulated firms using decentralized finance to provide financial services, clarifying how existing operational-resilience and financial-crime rules apply. Under the proposal, designated GC26/7, the FCA outlines risks tied to smart contracts, cross-chain bridges, oracles and dependencies on outside service providers. It also addresses anti-money-laundering controls, including customer due diligence and transaction monitoring. The guidance is meant to explain how existing requirements apply, rather than create new obligations. DeFi use or reliance on smart contracts does not automatically exempt a firm from regulatory licensing requirements.
Source: TokenPost
