FCA Pulls DeFi Into Existing Resilience Rules

The FCA is pushing DeFi into mainstream resilience supervision, requiring firms to prove they can map and manage end-to-end service dependencies.

Updated

What is this trend?

The FCA is extending existing operational resilience requirements to regulated firms using or interacting with DeFi, forcing end-to-end mapping of on-chain and off-chain dependencies.

  • DeFi is being folded into existing FCA resilience rules, not given a separate regime.
  • Firms must map smart contracts, oracles, bridges, key management, and governance.
  • Impact tolerances now cover services spanning trading, settlement, lending, staking, and redemption.
  • Supervisory evidence must show dependencies the firm does not control, not just internal systems.
  • Cryptoasset firms are expected to come into scope from October 2027.

What’s the latest?

The FCA’s October 2026 consultation GC26/7 pushes operational resilience into DeFi, applying existing rules to regulated firms wherever they use or interact with decentralized finance; cryptoasset fir

How it developed

  1. Continuous surveillance, continuous control, and continuous validation reshape risk operations and sanctions screening

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