According to CoinMeta, the UK Financial Conduct Authority (FCA) launched two consultations on October 21st with the aim of clarifying the regulatory framework for decentralized finance (DeFi) activities and determining which crypto-related activities will be exempted when new regulations come into effect in 2027. The consultations will accept feedback from the industry, with a deadline of November 18th. The FCA expects to issue final guidelines in January 2027. The new regulatory framework will take effect on October 25, 2027, by which time more crypto asset activities will be subject to FCA regulation. The first consultation focuses on financial service companies that use decentralized protocols. The FCA stated that although these applications rely on smart contracts and automated transactions, regulated entities will still need to meet existing compliance obligations.