UK's FCA suggests crypto apps using algorithms for trade routing may require licensing

The Financial Conduct Authority (FCA) published draft guidance on Oct. 21 warning that crypto trading applications selecting trading venues or transaction routes based on price, liquidity, costs, or execution speed may be arranging crypto deals, an activity requiring authorization under rules effective in Oct. 2027. This interpretation could bring DeFi aggregators and automated trading interfaces under the UK's licensing regime, though a technical-services exemption exists for applications that only connect customers to third-party platforms without influencing execution.