The Financial Conduct Authority (FCA) has introduced a stablecoin-specific cohort within its regulatory sandbox. In addition, the FCA has welcomed the regtech company Eunice into the sandbox to explore an industry-led initiative aimed at enhancing transparency within the UK’s crypto markets.
Eunice assists financial institutions, regulators, and businesses in navigating the complexities of cryptoassets, tokenized assets, and on-chain infrastructure. Collaborating with prominent companies like Coinbase, Crypto.com, and Kraken, Eunice is developing and testing technology in the FCA sandbox to improve the disclosure of crucial information about cryptoassets. This initiative aims to enhance the security of digital assets for investors by ensuring they understand the risks involved before making purchases.
To facilitate this, Eunice has established a working group focused on creating standardized, industry-led crypto disclosure templates. These templates will simplify compliance for firms, ensuring that investors receive the necessary information to make informed decisions.
The FCA is preparing to publish its final crypto rules next year. In a recent speech, David Geale, the FCA’s executive director for payments and digital assets, emphasized that the UK is “open for business” regarding crypto and stablecoins. Geale announced the launch of the stablecoin-specific cohort, which will assist issuers in testing UK-issued stablecoins while helping the FCA assess policy proposals. Interested firms have until January 18 to apply.
“This is a unique opportunity for innovative firms to test their stablecoin products and services within the UK’s evolving regulatory framework, potentially fostering new ideas that will benefit both wholesale and retail customers,” Geale stated.