In brief
- The Financial Conduct Authority has selected four firms for a stablecoin regulatory sandbox.
- The program will help shape final UK stablecoin rules due later this year.
- The sandbox will let the companies test stablecoin issuance in real-world conditions without regulatory penalties.
The UK’s top financial regulator announced Wednesday that it has selected four crypto firms to participate in a risk-free regulatory sandbox that will inform how the agency shapes stablecoin rules later this year.
The Financial Conduct Authority (FCA) chose neobank startup Revolut to participate in the sandbox, along with three other companies: Monee Financial Technologies, ReStabilise, and VVTX. All of the companies have existing stablecoin-related projects.
Decrypt reported last year that Revolut is mulling launching its own stablecoin, though the company has not yet made any announcements on the subject. Users on Myriad Markets—a prediction market operated by Decrypt’s parent company, Dastan—currently estimate that odds stand at 34% that Revolut will announce such a token before July.
The FCA’s stablecoin sandbox will allow the company, along with the three others, to trial stablecoin-related products in real-world conditions without fear of regulatory repercussions. The testing will focus primarily on stablecoin issuance, the FCA said.
The UK is currently developing its own rules regarding stablecoins, which are set to be finalized later this year. The results of the stablecoin sandbox program will directly impact the shape of those rules.
“The four selected firms’ proposals represent a range of stablecoin use cases, including payments, wholesale settlement and crypto trading,” the FCA said Wednesday. “Each firm will receive feedback from FCA specialists while helping to shape the UK’s regulatory approach.”
The companies were chosen from a pool of 20 applications, the FCA noted.
The United States passed its own stablecoin regulatory regime, the GENIUS Act, last summer. UK banking leaders have emphasized the importance, in recent months, of not falling behind America’s pace of establishing crypto regulations.
In September, both countries announced a joint crypto regulatory task force, chaired by officials from both the U.S. Treasury Department and His Majesty’s Treasury. The aim of the task force is to increase links between the American and British capital markets and reduce barriers between both nation’s crypto sectors.
The group, dubbed the Transatlantic Taskforce for Markets of the Future, is expected to release a report on its findings this summer.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Appeals court blocks New Jersey from shutting down Kalshi's sports markets
An appeals court ruled Monday that New Jersey could not temporarily ban prediction market provider Kalshi, giving the platform a much-needed win against an onslaught of state enforcement actions.
A Third Circuit Court of Appeals panel ruled in a 2-1 vote that the state could not bring an enforcemen
CoinDesk4h ago
Jack Dorsey posted to confirm that Apple has removed Bitchat, the decentralized messaging software, at China’s request.
Block CEO Jack Dorsey confirmed that Apple has removed the decentralized communications app Bitchat in accordance with China’s requirements because it violates China’s Cybersecurity Law. Bitchat uses Bluetooth and a mesh network for communication and does not rely on the internet, which is why it has been widely used in protests. The app can still be used in other countries, and the global download count has exceeded 3 million.
ChainNewsAbmedia6h ago
U.S. CFTC Chair: The federal regulatory framework is clear that the CFTC has jurisdiction over prediction markets
Gate News message: On April 6, U.S. Commodity Futures Trading Commission (CFTC) Chair Mike Selig posted on the X platform that U.S. federal law clearly states that the derivatives market is regulated by the CFTC. Whether it is prediction markets related to sports, politics, or oil prices, under the federal regulatory framework the CFTC has clear jurisdiction to regulate these markets, and it is obligated to uphold the relevant regulations.
GateNews6h ago
Polymarket and Kalshi Face Setbacks as Prediction Markets Confront Legitimacy Questions - Unchained
This week, major prediction market platforms Polymarket and Kalshi faced significant backlash, highlighting the divide between regulatory approval and public acceptance. Polymarket withdrew controversial betting markets after public outcry, while Kalshi's contract offerings were banned in Nevada, stressing the industry's legitimacy challenges.
UnchainedCrypto9h ago
Korea’s FSC requires exchanges to set up an asset reconciliation system every 5 minutes, to be deployed by the end of May
The Korea Financial Services Commission requires all cryptocurrency exchanges to set up a system to verify assets every 5 minutes, and to complete it by the end of May. It found that some exchanges’ verification frequency is insufficient and that there are defects in their trading circuit breaker mechanisms; all exchanges are required to publish their asset balances and submit to audits. The regulatory measures stem from an operational mistake at an exchange in February.
GateNews12h ago
China orders Apple to pull Dorsey's Bitchat, the messaging app used during Iran protests
Apple removed Bitchat, a decentralized messaging app by Jack Dorsey, from its China App Store at China's request, citing regulatory violations. Despite this, the app remains available globally and has seen over three million downloads.
CoinDesk13h ago
