**[UK Financial Regulator Launches Consultation on DeFi Guidelines and Crypto Regulations]** BlockBeats News, October 22: The UK Financial Conduct Authority (FCA) has announced the launch of two consultation periods, one focusing on how businesses utilizing decentralized finance (DeFi) should comply with its guidelines, and another addressing exemptions for certain crypto assets due to "recent legislative changes." In a notice released on Wednesday, the FCA initiated the consultation period aimed at helping DeFi businesses adhere to the financial regulator's anti-money laundering and financial crime rules. The agency also announced a consultation on "crypto asset regulatory exemptions," citing recent legislative developments in the UK. Regarding DeFi, the FCA stated that the proposed guidelines are "intended to clarify existing rules rather than establish new policies." "DeFi is one of the most innovative areas within (financial services)," the UK Cryptoasset Business Council said in response to the consultation. "The UK can still strike the right balance—clear boundary rules, proportionate expectations, and a framework that allows responsible innovation to take root here rather than migrate elsewhere... The FCA needs to handle this matter appropriately." The crypto regulatory exemptions refer to a regulatory framework previously announced by the FCA, which covers arrangements for holding stablecoins and reserve assets, expected to take effect in October 2027. The FCA opened the application channel for crypto entities on September 30, requiring compliant businesses to submit applications by the February 28, 2027 deadline. [Original Link]