The Financial Conduct Authority (FCA) in the United Kingdom has authorized the regulatory technology company Eunice to conduct trials in its sandbox, which outlines the vision for the nation’s upcoming crypto rulebook.

On Wednesday, the FCA revealed that Eunice would be testing standardized crypto disclosure templates with leading exchanges such as Coinbase, Crypto.com, and Kraken. The aim of these templates is to enhance transparency in real-world applications.

The FCA emphasized its ongoing acceptance of applications for the sandbox, inviting any firm interested in testing similar solutions to contribute to its regulatory methodologies.

By opting for industry-driven instruments rather than solely theoretical policies, the FCA indicates that the formulation of future crypto regulations will take guidance from practical trials alongside real-world data.

UK Strives for Greater Transparency in Crypto

Eunice’s co-founder and CEO, Yi Luo, remarked that the sandbox provides an excellent opportunity for collaboration between regulators and industry stakeholders to fortify the UK’s crypto ecosystem. She expressed hope that this initiative could heighten integrity and transparency, especially as institutional interest in crypto continues to surge.

“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,” she said.

This effort is interconnected with the broader policy initiatives set by the FCA, as the disclosure templates emerged in response to last year’s Admissions and Disclosures Discussion Paper, which encouraged industry contributions to shape future regulations.

The FCA’s Strategy for the Crypto Sector

The Eunice trial is part of a larger regulatory effort, complementing the FCA’s multi-year Crypto Roadmap, poised to finalize the UK’s crypto regulations by 2026.

In the past year, the UK has enacted numerous regulatory reforms to clarify the crypto landscape. The FCA has sharpened its financial promotion protocols for crypto firms, issued warnings to unregistered exchanges, and released an extensive discussion document on admissions, disclosures, and market abuse associated with crypto assets.

Recently, the FCA adopted a more accommodating stance towards crypto, lifting restrictions on crypto exchange-traded notes (ETNs) for retail investors, enabling UK consumers to participate in these crypto-related products. Moreover, it opened consultations on whether conventional financial policies should apply to the crypto domain.