Consultation engagement session: FCA’s Consultations on Decentralised Finance (DeFi) GC26/7 & CP26/36** Cryptoasset Perimeter Guidance

Decentralised Finance (DeFi), GC26/7

The consultation on Decentralised Finance (DeFi), GC26/7 focuses on non-Handbook guidance to help firms understand how existing operational resilience and financial crime requirements may apply when they provide financial services using DeFi. DeFi may support innovation and efficiency, but firms must continue to meet the same regulatory outcomes as are expected in traditional financial services. These include protecting consumers, maintaining market integrity, supporting operational resilience and managing financial crime risks.

Cryptoasset Perimeter Guidance, CP26/36**

The consultation on Cryptoasset Perimeter Guidance, CP26/36** focuses on changes to the FCA’s Perimeter Guidance Manual (PERG) within the FCA Handbook. The changes explain how the changes to the amendments in the legislation apply, and how the new exclusions interact with the regulated cryptoasset activities.

The FCA are seeking views on their draft guidance, which sets out their interpretation of the Cryptoassets Amendment Regulations and their interpretation of how decentralisation can impact perimeter analysis. The existing guidance (PERG 18) and the amendments proposed in this consultation should be read together.

The draft guidance also includes amendments to PERG 8, to reflect consequential changes needed in respect of the guidance on financial promotions as a result of amendments made to the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 by the Cryptoassets Amendment Regulations.

Why attend

This is a practical, discussion-led workshop designed to gather real member insights. We would appreciate as many members attending as possible to ensure our response is comprehensive and representative of the views of our membership.

We have directly invited members within relevant working groups and would appreciate hearing from those representatives to ensure that insights are captured that reflect TPA’s key focus areas.

These consultations are closely related, and both have the deadline of 18th November, so we will be responding the 20 questions across both consultations in one session.