FCA Launches Stablecoin Sandbox Cohort as UK Pushes for Safer Crypto Markets

The UK’s Financial Conduct Authority (FCA) has taken a significant step toward strengthening the regulatory framework for digital assets, unveiling a stablecoin-specific cohort within its regulatory sandbox, reports Finextra. The initiative is part of the regulator’s broader strategy to enhance market transparency and consumer protection as the UK prepares to issue its final crypto rules next year.

In addition to the new cohort, the FCA has also accepted regtech firm Eunice into the sandbox. Eunice specialises in helping financial institutions and regulators navigate cryptoassets, tokenised assets and on-chain infrastructure. Working alongside major industry players—including Coinbase, Crypto.com and Kraken—Eunice will design and test technology aimed at improving disclosure standards for cryptoassets.

The firm has already convened a working group to develop standardised, industry-driven crypto disclosure templates. These templates are intended to streamline compliance for firms while giving investors clearer, more consistent information to support informed decision-making.

As part of the FCA’s evolving regulatory roadmap, David Geale, the organisation’s Executive Director for Payments and Digital Assets, reiterated that the UK remains “open for business” when it comes to crypto and stablecoin innovation. Geale highlighted that the new stablecoin cohort will allow issuers to test UK-issued stablecoins under real-world conditions, while giving the FCA an opportunity to review policy proposals in practice.

Applications for participation in the stablecoin sandbox cohort are open until 18 January. “This is 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,” Geale said.