FCA Perimeter

Definition ∞ The FCA Perimeter defines the scope of activities and entities that fall under the regulatory authority of the Financial Conduct Authority in the United Kingdom. This boundary determines which financial services and products, including those involving digital assets, are subject to the FCA’s rules and oversight. Understanding the perimeter is crucial for businesses operating in the UK crypto space to ensure compliance and avoid regulatory breaches. It delineates the legal obligations for market participants.
Context ∞ The FCA Perimeter is a frequently discussed topic in UK crypto news, especially as the regulatory landscape for digital assets evolves. Debates often focus on whether new types of digital assets or decentralized finance (DeFi) activities fall within or outside this established boundary. Businesses entering the UK market closely monitor updates to this perimeter to navigate compliance requirements and legal obligations effectively.