Coinbase Policy Chief Urges U.K. to Revise Crypto Rules Affecting DeFi

Proposed U.K. crypto rules could block regulated platforms from connecting customers with decentralized finance protocols if order execution is limited to authorized venues, Katie Harries, head of policy for Europe at Coinbase, said.

The proposal may require platforms to execute customer orders only on trading venues authorized by the Financial Conduct Authority (FCA). That condition would apply to orders handled by regulated platforms, tying them to venues the regulator has approved.

Decentralized protocols generally lack an entity that could apply for FCA authorization. Harries argued that this creates a gap: regulated platforms could be unable to offer customers access to protocols that have no applicant for that status.

Harries characterized the potential loss of access through regulated platforms as a de facto ban on DeFi access. She is urging the FCA to revise its proposed crypto rules. The broader regulatory framework is expected to take effect Oct. 25, 2027.