The UK's Financial Conduct Authority has opened a sandbox environment for stablecoin companies.

PANews November 28 news, according to Ledger Insights, the UK Financial Conduct Authority (FCA) announced that as part of its Regulatory Sandbox program, it will launch a stablecoin project group, with the application deadline set for January 18, 2026. Additionally, Bloomberg reported that the UK Debt Management Office is exploring ways to expand the UK's government bond market, which will be related to stablecoin reserves. In a speech yesterday, David Geale from the UK Financial Conduct Authority stated that a “large enterprise” has been included in the sandbox program to test a pound stablecoin for payments. Sandbox participants must ensure that their designs comply with the requirements outlined in the authority's consultation document from May. The UK adopts a dual-track approach to stablecoin regulation: the Bank of England regulates stablecoins that are systemically important for prudential and financial stability purposes; the regulatory responsibility for other stablecoins falls under the Financial Conduct Authority, which is also responsible for conduct and consumer protection regulation of all stablecoins.