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first_img FCA releases draft guidelines for DeFi, clarifying when interfaces need to obtain authorization in the UK

On October 21, the UK's Financial Conduct Authority (FCA) published Consultation Paper 26/36 titled "Guidance on the Regulatory Scope of Cryptoassets," which explains how to determine whether related activities require authorization when the business model involves a certain degree of decentralization.The FCA pointed out that the use of software, smart contracts, distributed ledger technology, distributed governance mechanisms, or other technological arrangements does not, by itself, determine whether there are regulated activities that require authorization. Automation merely describes the manner in which functions are executed and does not determine whether that function constitutes part of a regulated activity. The so-called "true DeFi" is not a statutory concept in the "Regulated Activities Order" or the "Cryptoasset Regulations"; the degree of decentralization is a continuum and does not constitute an independent or separate regulatory framework.At the same time, the FCA also published Guidance Consultation Paper 26/7, which explains how regulated firms should manage DeFi risks, focusing on operational resilience and financial crime risks, and provides examples of measures that firms may consider taking. Both consultation papers will close for comments on November 18, and the FCA plans to publish the final guidance in January 2027. Starting from October 25, 2027, the new regulations will bring new cryptoasset activities under regulatory oversight, and firms wishing to continue related business must submit authorization applications by February 28, 2027.

first_img Binance launched an AI trading interface, with approximately 150,000 users participating in the testing

Cryptocurrency exchange Binance announced the official launch of the personalized trading interface Binance AI for global English users. This free tool is based on generative UI and can customize market information, portfolio tracking, and trading functions according to users' interests and trading experience levels, with more language versions being rolled out gradually. A Binance spokesperson revealed to The Block that since testing began on September 7, approximately 150,000 users have participated in the trial.The features of Binance AI include AI-generated portfolio performance summaries, analysis of popular volatile assets, voice alerts, and on-demand text or audio market briefings. The product was demonstrated in a live broadcast last week, alongside the upcoming Binance AI Pro. Binance's Vice President of Product, Jeff Li, stated that the market is becoming increasingly complex, but tools for understanding the market should be easier to use. This interface aims to make market information more accessible to users, whether they are novice traders or managing more complex positions.Binance Co-CEO Richard Teng described the product in an announcement on October 5 as part of the company's efforts to make financial information more accessible. He stated that finance has always been built for those who already understand it, blockchain allows everyone to enter the market, and AI empowers everyone with the knowledge to navigate the market. In April of this year, Teng discussed the company's super app strategy with The Block, which includes plans on how to utilize artificial intelligence.

Vitalik: AI will become the new user interface, directly executing complex on-chain operations or becoming the norm

At the OKX Now 2026 Summit in Singapore, Ethereum co-founder Vitalik Buterin stated that AI is demonstrating the ability to break out of sandboxes, attack websites, and discover software vulnerabilities, while also helping the Ethereum protocol identify vulnerabilities, implement complex cryptography, and conduct formal verification.He believes that higher levels of security will become feasible and necessary, as AI will continuously discover exploitable vulnerabilities within systems.Vitalik revealed that about a month ago, he updated ENS information for the first time without using a user interface (UI), only requiring a local AI agent to write a script, which was completed in about 5 minutes. He anticipates that executing complex on-chain operations directly through AI will gradually become the norm, with AI becoming a new user interface in more scenarios.He cited the Safe-related hacking incident involving approximately $1.4 billion in losses as an example, pointing out that the attacks targeted the interaction layer between users and on-chain systems, rather than the on-chain contracts. Directly handling transactions with AI may reduce the risks associated with reliance on web interfaces, but it will also introduce new challenges, including whether the AI itself is secure, whether it can resist prompt injection, and whether it correctly understands on-chain operations. As interaction methods change rapidly, some issues will be resolved, while new security challenges will also emerge.

A user lost approximately 50 million dollars in a single transaction due to slippage, and the founder of Aave stated that the interface had issued multiple warnings

A crypto user lost approximately $50 million in a token swap transaction on Thursday. On-chain data shows that the user exchanged about $50.43 million worth of aEthUSDT for aEthAAVE through the CoW Protocol, but due to insufficient liquidity pool depth, the transaction experienced a slippage of over 99%, ultimately resulting in the user receiving only about 327 aEthAAVE, worth approximately $36,000, with the difference being captured by arbitrage traders and network intermediaries.Aave founder Stani Kulechov posted on the X platform that the user purchased AAVE using $50 million USDT through the Aave interface. Due to the unusually large size of the single order, the interface issued an extreme slippage warning to the user and required confirmation. After accepting the warning on a mobile device, the user proceeded with the transaction.Kulechov stated that the CoW Swap router operated as expected and followed industry-standard operating procedures, but the outcome was clearly not ideal. Kulechov mentioned that Aave plans to contact the user and refund approximately $600,000 in fees charged from the transaction. Days before this incident, about $27 million in positions on Aave were liquidated, and some market participants believe that this liquidation may be related to a temporary pricing issue with wstETH.

Gate upgrades Gate for AI, DEX now supports standardized MCP interface

The global cryptocurrency trading platform Gate has announced the upgrade of its AI Agent infrastructure, Gate for AI. Today, the DEX MCP has been fully upgraded to provide native full-scenario market insights and cross-chain trading capabilities for AI Agents.Gate for AI has now connected CEX and DEX, building five major capability systems. First, centralized trading capabilities (CEX), supporting the invocation of products such as spot, contracts, wealth management, and IPOs; second, on-chain trading capabilities (DEX), supporting Swap, on-chain perpetual contracts, and Meme coin trading, deeply aggregating liquidity from 20+ mainstream public chains, and achieving optimal price execution through smart routing; third, wallet and signature systems, supporting wallet creation and on-chain signing; fourth, real-time information and sentiment data systems, providing structured market news and event data; fifth, on-chain data and industry information query capabilities, supporting queries on currencies, projects, addresses, and risk information.Gate for AI connects centralized and on-chain markets through a unified interface, allowing AI to conduct research, strategy generation, and trade execution within the same framework. After developers integrate mainstream AI systems, AI can directly invoke trading and data capabilities.This system adopts a dual-layer architecture of MCP + Skills, aiming to extend the exchange capabilities from traditional user interfaces to infrastructure that can be invoked by AI. This upgrade marks a gradual shift of trading platform capabilities towards AI-native infrastructure, and Gate will continue to promote the application of AI Agents in the digital asset market.

Bybit incubates DEX Byreal and releases the first open-source command line interface tool for AI agents

The first on-chain DEX incubated by Bybit, Byreal, founder emilyrealfreeman stated on social media that the Byreal Command Line Interface (CLI) has been open-sourced, marking its first protocol interface designed for AI agents.Unlike ordinary API wrappers or chatbot interfaces, Byreal CLI redefines the interaction between protocols and machines from an architectural level, providing deterministic execution, intent-constrained driven operations, and an Agent functionality focused on understanding users, making the system inherently safer and more reliable. Byreal CLI offers AI Agents a complete set of three primitives: identity, wallet (asset control), and a permissionless execution environment, which can only be supported simultaneously by cryptographic technology.Agents can freely discover, execute, and learn through a single command, including one-time liquidity pool analysis (APR estimation, risk scoring, LP range suggestions), with documentation and interfaces designed for AI execution. The new feature Copy Farmer allows Agents to automatically replicate top liquidity provision strategies. Byreal believes that within approximately two years, DeFi trading volume will flow more through AI Agents rather than front-end interfaces, and projects that optimize protocols for Agents in advance will win the routing layer, while those that do not keep up may become forgotten backend systems.
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