The FCA has accepted RegTech platform, Eunice, into its Regulatory Sandbox to explore an industry-led solution to improve transparency of the UK's crypto markets.
Eunice helps financial institutions, regulators and businesses navigate cryptoassets, tokenised assets and on-chain infrastructure. Working alongside some of the largest cryptoassets firms including Coinbase, Crypto.com, and Kraken, Eunice is designing and testing an innovative solution in the sandbox for disclosing important information about cryptoassets.
This will help make digital assets safe and more secure for UK investors by ensuring consumers understand the risks before purchasing crypto.
A working group convened and led by Eunice has developed 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.
As part of the FCA's Regulatory Sandbox[2], Eunice will experiment with the disclosure templates to achieve maximum transparency. The insights gained from Eunice's test will help inform the FCA's approach to disclosures requirements for cryptoassets.
Yi Luo, CEO and co-founder of Eunice said:
'The FCA Sandbox is where regulators and industry participants meet to build the foundations for a safer and smarter digital asset market. Leading the work around disclosures is a great point of pride for Eunice, which was founded to bring integrity and transparency to digital assets at a time when institutions are stepping into the space. We are excited to work with the FCA and the industry and look forward to making a lasting impact.'
Colin Payne, head of innovation at the FCA said:
'The FCA has a strong track record of helping firms launch products and services that benefit consumers and markets. Our Regulatory Sandbox accepts applications year-round from all types of firms who are looking to test their innovative ideas.
'We encourage any firm to apply who are looking to test a similar solution to help inform our regulatory approach to cryptoassets.'
This solution is in response to the FCA's Admissions and Disclosures Discussion Paper that was published last year and encouraged industry to share its expertise and help shape future rules.
As part of the FCA's Crypto Roadmap, the regulator has set out its upcoming policy publications as it prepares to publish its final rules in 2026. Recognising the dynamic nature of the crypto sector, the FCA has encouraged industry to play a leading role in helping to shape clear crypto regulation.
Clear crypto regulation will improve the integrity of the UK's crypto markets, help protect consumers and support the UK's growth and competitiveness, a central part of the FCA's strategy.
Notes to editors
- The FCA's Innovation Hub[3] provides support to firms to launch innovative products and services.
- Since 2014, the FCA's Regulatory Sandbox has provided a safe place for firms to test innovative products and ideas in the market with real consumers. It has since been replicated by over 95 global regulators.
- Read the FCA's Discussion Paper on Admissions and Disclosures and Market Abuse Regime for Cryptoassets[4].
- The FCA's Crypto Roadmap (PDF)[5] sets out planned policy publications for cryptoassets.