GC26/7: Decentralised finance guidance (DeFi)

Read GC26/7 (PDF)[2]

Why we are consulting

Our guidance covers observations on the current risk landscape relevant to DeFi. It focuses on operational resilience and financial crime risks, and provides illustrative examples of measures firms may wish to consider.

By helping firms better manage these risks, the proposed guidance aims to protect consumers, uphold market integrity and promote effective competition.

Firms should read this guidance consultation alongside our consultation paper on perimeter guidance, CP26/36: Cryptoasset Perimeter Guidance[3].

Firms will also find our wider publications on the cryptoasset regime[4], including our policy statements, relevant. They should also consider our other publications on operational resilience[5] and our Financial Crime Guide[6].

Who this applies to

FCA regulated firms providing financial services using DeFi that are:

• In scope of SYSC 15A (Operational resilience).
• In scope of SYSC 6 (Compliance, internal audit and financial crime).
• Subject to the MLRs.

It may also interest:

• Other FCA regulated firms.
• Those who are not authorised by the FCA but interact with DeFi.
• Industry groups and trade bodies.
• Professional advisers.
• Consumers and groups representing consumer interests.
• Policy makers and other regulatory bodies.
• Academics and think tanks.
• Industry experts and commentators.

Next steps

Online response form[7]

Please send us your comments by 18 November 2026.

You can do this using our online response form[7] or by emailing [email protected]. If you are responding by email, please tell us if:

• You want us to treat your response as confidential.
• You are content to be named as a respondent.

We will consider your feedback and update the proposed guidance as appropriate. We plan to publish the final guidance in January 2027.

Background

DeFi is a general term for financial services facilitated by distributed ledger technology and featuring high levels of automation, open and interoperable technology, and, in some cases, no traditional intermediary.

Firms using DeFi should do so safely and responsibly, as with other technologies. Its features can expose firms and their clients to increased operational resilience and financial crime risks.

From 25 October 2027, the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 will bring new cryptoasset activities into our regulatory perimeter.