According to Cointelegraph, Coinbase’s European policy head Katie Harries warns that the United Kingdom’s forthcoming 2027 cryptocurrency regulations risk creating a de facto ban on regulated firms offering access to decentralized finance (DeFi). The concern centers on how current proposed rule language may prevent licensed entities from providing compliant pathways for users to engage with DeFi protocols while remaining within regulatory boundaries.
Harries emphasizes that the goal should be a practical, enforceable framework that allows regulated firms to offer access to DeFi services without exposing users to unregulated or high‑risk offerings. Without such clarity, firms may avoid providing legitimate DeFi‑related support, effectively limiting lawful market participation.
The UK government has indicated it is developing rules aimed at enhancing consumer protection and market integrity in the crypto sector. Feedback from industry participants, including Coinbase’s European policy team, seeks to ensure regulatory measures are workable for firms that wish to operate within legal limits while supporting user access to DeFi.
