DeFi Education Foundation urges UK regulators to tighten the "control" definition to avoid harming developers

2026-02-13 19:06:37

Abstract generation in progress

Mars Finance reports that according to CoinDesk, the DeFi Education Fund (DEF) based in Washington, D.C., responded to the UK Financial Conduct Authority (FCA) regarding the regulatory consultation on crypto asset activities. They stated that regulatory obligations should only apply to entities that have “unilateral control” over user assets or transactions, and should not be considered intermediaries solely for developing or participating in decentralized protocols. DEF advocates that “control” should be linked to specific operational permissions such as initiating or stopping transactions unilaterally, modifying protocol parameters, or excluding users. They also warn that directly applying the prudential regulation, reporting requirements, platform access, and comprehensive anti-money laundering obligations of centralized exchanges to automated, non-custodial DeFi protocols would be structurally incompatible.

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