US crypto lobby urges UK to clarify regulations

The U.S. crypto lobby group DeFi Education Fund (DEF) has urged the UK's Financial Conduct Authority (FCA) to establish clearer and more narrowly defined standards for cryptocurrency regulation, CoinDesk reported. The DEF argued that the application of regulations should be determined by whether a specific entity has direct management and control over user funds or transactions. The group stated that merely participating in the development of a decentralized protocol should not automatically subject an entity to regulatory oversight. It warned of the risk that software developers, who do not hold user funds or have the authority to block transactions, could be subjected to the same level of regulation as banks or exchanges.