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The Financial Conduct Authority (FCA) of the United Kingdom has selected four firms to test stablecoin-based products within its regulatory sandbox. From a pool of 20 candidates, Monee Financial Technologies, ReStabilise, VVTX, and the UK digital bank Revolut were chosen.
The regulator indicated that participants will have the opportunity to trial their solutions in real market conditions under FCA supervision while adhering to safety requirements. The agency aims to practically assess the effectiveness of regulatory standards for companies engaged with digital assets and ensure that forthcoming regulations do not hinder innovation.
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The testing will primarily focus on the issuance of stablecoins. Participants will present various use cases for the tokens, including payments, wholesale settlements, and crypto trading. Each company will receive feedback from FCA experts, which will aid in creating a more transparent regulatory environment for the sector.
“We support UK stablecoin issuers and are working to ensure they can be trusted in matters of payments, settlements, and trading. The testing will enhance the FCA’s strategy and modernize the country’s payment sector,” stated Matthew Long, the director of the payments and digital assets division at the FCA.
Previously, the FCA warned that cryptocurrency platforms operating in the UK market must complete the full registration process within a year. The agency also announced that even the publication of any symbols and memes related to cryptocurrency must receive prior approval from the regulator.
