Developing a New Standard for Transparency

Major cryptocurrency exchanges Coinbase, Kraken, and Crypto.com are participating in a regulatory sandbox with the UK’s Financial Conduct Authority (FCA). This initiative is designed to test and inform a new, comprehensive disclosure framework for the crypto sector, with formal rules expected to be introduced in the second half of 2026.

The move is part of the FCA’s broader effort to regulate the digital asset industry. The regulator already rolled out new rules for marketing crypto assets to UK retail investors in October, which require firms to disclose investment risks and display mandatory warnings to new customers. The upcoming regime, however, will extend far beyond these initial steps.

Anticipating the potential for the expanded requirements to become an administrative challenge, regulatory technology startup Eunice is developing a solution to streamline the process. Working with the exchanges inside the FCA sandbox, Eunice aims to create standardized disclosure templates that improve transparency without creating an excessive bureaucratic burden.

What Information Will Be Required?

The FCA is expected to mandate distinct disclosure requirements for different types of digital assets, including unbacked cryptocurrencies, fiat-backed stablecoins, and tokenized assets. The goal is to provide investors with clear and relevant information tailored to each asset class.

Under the proposed framework, issuers and exchanges will need to be transparent about custody arrangements, fees, spreads, and the specific terms of any staking or yield-generating products. Furthermore, documentation for each asset must clearly identify all associated risks, particularly those related to its issuance and custody models. It’s anticipated that these detailed disclosures will be accompanied by a simple, one-page fact sheet for investors.

Meanwhile, issuers of qualifying stablecoins will be subject to a separate regulatory regime currently being developed by the Bank of England. According to a recent central bank report, these rules will focus heavily on reserve-management transparency and clear redemption policies.