THE DeFi Education Fund (DEF), a Washington, D.C.-based advocacy group, is urging the U.K. Financial Conduct Authority (FCA) to limit its upcoming cryptocurrency regulations to entities that have unilateral control over user funds or transactions, CoinDesk reported Friday (February 13).
The DEF made these comments in response to an FCA consultation paper and shared this response exclusively with CoinDesk, according to the report.
When determining the scope of regulations, “control should be the determining factor,” DEF said, according to the report.
The FCA announced in December that it was seeking feedback on its proposals for the UK. cryptography rules And that it is would accept answers until Feb. 12.
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The regulator’s proposed crypto rules cover a number of areas, including admissions and disclosures, market abuse, crypto trading platforms, intermediaries, staking, lending and borrowing, decentralized finance and prudential requirements.
“The regulations are coming and we want to get it right” David Gealeexecutive director of payments and digital finance at the FCA, said when announcing the consultation on the rules. “We have listened to the feedback and are now setting out our proposals for the UK’s crypto regime.”
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“Our aim is to have a regime that protects consumers, supports innovation and promotes trust,” Geale added.
In January, the FCA published information for firms that to want offering crypto-related services in the UK under the crypto asset regulatory regime that is expected which will come into force in 2027.
Information released to help businesses prepare for the new regulatory regime covers regulated activities on crypto assets; the FCA standards for crypto asset businesses and individuals; the regulator’s approach to authorization, monitoring and enforcement for companies that carry out these activities; A door for companies that wish to undertake activities in crypto assets; and a proposal transitional provision This will allow existing crypto asset companies that fail to obtain authorization to wind down their UK operations in an orderly manner.
The FCA said in its January announcement that over the following months it will publish policy consultations leave its proposed rules and guidelines, examine the responses to these consultations, then statement its final rules and directions in political declarations.
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