UK Regulator Consults on DeFi & Crypto Law Updates

The FCA is collecting input from industry participants and other stakeholders, and that feedback will feed into the final frameworks. The regulator is pushing for new crypto rules that give firms and consumers more certainty, and how it handles the next steps will shape how crypto businesses operate in the UK.

A large share of the consultation is devoted to DeFi, where the FCA wants specific guidance that reflects how these protocols actually work. The same debate is playing out elsewhere. The Cardano Foundation has warned against regulatory overlap in the European Union’s crypto laws, a sign that regulators in several jurisdictions are still working out where oversight should sit.

Markets Stayed Busy Despite No Direct Link

Crypto prices were active on October 22, 2026. Pluang’s market snapshot, which prices assets in Indonesian rupiah, showed 40 of 50 major cryptocurrencies rising and 9 falling. Standout moves included:

• Ethereum Classic (ETC): up 3.78% to Rp147.192
• Chainlink (LINK): up 3.34% to Rp228.040
• Bitcoin Cash (BCH): up 3.34% to Rp5.182.519

The snapshot comes from an Indonesian platform, so it says little about how UK-focused firms or investors are reacting to the consultation.

Hashlytics Take

Consultations are the slow, unglamorous part of regulation, and this one tells us what the FCA is thinking about rather than what it will require. The sharper question is how the regulator defines accountability for DeFi, where there is often no single company to authorize or hold responsible. Until the consultation papers spell that out, firms building on or around DeFi protocols should treat the FCA’s direction as a signal to engage now rather than wait for final rules. Cardano’s EU warning is a useful reminder of what happens when overlapping frameworks arrive without coordination: compliance costs rise, and clarity does not.