UK Financial Conduct Authority (FCA) Plans to Strengthen Regulation of DeFi Platforms

In August 2024, the UK Financial Conduct Authority (FCA) announced plans to tighten regulation of decentralized finance (DeFi) platforms. With the rapid expansion of the DeFi market and the emergence of various innovative products, the FCA has expressed concerns about consumer protection and market stability. The new regulatory framework will require DeFi platforms to comply with anti-money laundering (AML) and know-your-customer (KYC) requirements and impose stricter oversight on platform governance structures, transparency, and risk management. The FCA's initiative reflects the growing attention of regulators to the DeFi space, and other countries are expected to follow suit with similar regulatory measures.