UK's FCA Greenlights Eunice Sandbox for Crypto Regulation Experimentation

The United Kingdom’s Financial Conduct Authority (FCA) has greenlit regulatory technology (RegTech) company Eunice to conduct experiments within its regulatory sandbox. This move provides a clear indication of the nation's strategy for developing its forthcoming cryptocurrency regulatory framework. On Wednesday, the FCA announced Eunice's plan to test standardized crypto disclosure templates with leading exchanges, including Coinbase, Crypto.com, and Kraken. The primary goal is to assess whether these templates enhance transparency in real-world scenarios. The FCA also emphasized that its regulatory sandbox remains open for applications from companies seeking to test innovative solutions. According to Colin Payne, Head of Innovation at the FCA, “We encourage firms exploring similar solutions to apply, as their findings will inform our regulatory approach to cryptoassets.” By focusing on industry-led tools and empirical evidence rather than solely relying on theoretical policy, the FCA suggests that forthcoming crypto regulations will be grounded in practical trials and real-world feedback. Cointelegraph has reached out to Eunice for further comments but has yet to receive a response. ### UK Prioritizes Transparency in Crypto Yi Luo, co-founder and CEO of Eunice, stated that the sandbox creates a collaborative environment for regulators and industry players to strengthen the foundations of the UK’s crypto markets. She highlighted the project's aim to bolster integrity and transparency in the crypto space amid increasing institutional involvement. “Leading the effort on disclosures is a significant point of pride for Eunice, which was established to bring integrity and transparency to digital assets as institutions enter the market,” Luo said. This pilot program directly supports the FCA’s broader policy objectives. The disclosure templates were developed in response to the Admissions and Disclosures Discussion Paper released last year, which encouraged industry input and early-stage thinking on future regulations. ### The FCA’s Crypto Regulatory Roadmap The Eunice sandbox trial is part of a larger regulatory initiative, complementing the FCA’s multi-year Crypto Roadmap, which is slated to culminate in the publication of the UK's finalized crypto regulations in 2026. Over the past year, the UK has implemented several regulatory changes aimed at providing clarity for the crypto industry. The FCA tightened financial promotion rules for crypto firms, issued warnings to unlicensed crypto exchanges, and released a comprehensive discussion paper addressing admissions, disclosures, and market abuse risks associated with crypto assets. In recent developments, the UK regulator has adopted a more supportive stance toward crypto. On August 1, the FCA lifted its ban on crypto exchange-traded notes (ETNs) for retail investors, allowing UK consumers to access crypto-based ETN products. On September 17, the FCA initiated a consultation on whether traditional finance regulations, such as the Consumer Duty (requiring firms to deliver good consumer outcomes), should be applied to the crypto sector.