The Financial Conduct Authority has launched a stablecoin-specific cohort of its regulatory sandbox. Separately, the watchdog has accepted regtech Eunice into the sandbox to look into an industry-led effort to boost transparency in the UK's crypto markets
Eunice helps financial institutions, regulators and businesses navigate cryptoassets, tokenised assets and on-chain infrastructure.
Working alongside the likes of Coinbase, Crypto.com, and Kraken, the firm is now designing and testing technology in the FCA sandbox for disclosing important information about cryptoassets in a move designed to make digital assets safe and more secure for investors by ensuring consumers understand the risks before purchasing crypto.
Eunice has already put together a working group to develop standardised, industry-led crypto disclosure templates that will make it easier for firms to meet document requirements, to ensure investors have the right information to make well-informed decisions.
The FCA is gearing up to publish its final crypto rules next year. As it does so, the watchdog's executive director for payments and digital assets, David Geale, has used a speech to stress that the UK is "open for business" when it comes to crypto and stablecoins.
Geale has revealed the launch of a stablecoin-specific cohort in the sandbox. It will support issuers in testing UK-issued stablecoins, while also helping the FCA test policy proposals. Firms have until 18 January to apply.
"It’s a unique chance for innovative firms to test their stablecoin products and services under the UK’s evolving regulatory regime - potentially driving new ideas to benefit both wholesale and retail customers," says Geale.