The FCA has not explicitly prohibited firms from offering DeFi services to their customers, but it has chosen to apply the same requirements as it does to fully centralized platforms, which could create a de facto ban. From October 25, 2027, firms providing cryptoasset services to UK customers will need authorization, and the FCA is consulting on guidance covering firms that use or interact with DeFi. The identified risks concern consumer protection, circumvention of regulatory obligations, financial crime and market resilience. Author Katie Harries, Coinbase’s head of policy for Europe, therefore recommends clear disclosures, explicit consent, selection of accessible protocols and incident reporting, as already allowed for some multi-asset trading platforms.
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