The DeFi Education Foundation urges UK regulators to tighten the definition of "control" to avoid misfiring on developers

According to CoinDesk, the DeFi Education Fund (DEF) based in Washington, USA, stated in response to the UK Financial Conduct Authority (FCA) regarding the consultation paper on the regulation of crypto asset activities 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 argues that "control" should be linked to specific operational powers such as the ability to unilaterally initiate or block transactions, modify protocol parameters, or exclude users, and warns that directly applying the requirements for prudent regulation, reporting, and platform access of centralized trading platforms, as well as complete anti-money laundering obligations, to automated, non-custodial DeFi protocols will be structurally mismatched.