The Financial Conduct Authority (FCA) in the UK has taken a bold step into the evolving crypto landscape by introducing a stablecoin-focused cohort within its highly regarded Regulatory Sandbox. As someone deeply entrenched in the startup ecosystem and fascinated by innovative regulatory approaches, I, Violetta Bonenkamp, recognize this move as paving the way to create a balanced environment where innovation meets compliance. If you're a startup founder, entrepreneur, or freelancer navigating the crypto waters, let me guide you through why this matters, how you can benefit, and what mistakes you absolutely must avoid.
What is the FCA's Regulatory Sandbox and Why Stablecoins?
For those unfamiliar, the FCA's Regulatory Sandbox is essentially a controlled testing environment where businesses can experiment with their disruptive tech, financial services, or products without immediately facing full regulatory obligations. The stablecoin cohort, announced on 26 November 2025, is a specialized category that enables stablecoin issuers to test UK-issued stablecoins while ensuring regulatory alignment.
Why Stablecoins? They represent a growing force in the cryptoasset market due to their low volatility and ability to drive innovations in both retail and wholesale financial scenarios. As someone who has developed her own game-based methodology for startups and worked with tech-heavy industries, I see stablecoins not just as financial instruments, but also as pivotal in decentralized ecosystems, payment solutions, and cross-border transactions. The FCA's step toward regulatory clarity means startups can now explore use cases without fear of legal ambiguity holding back their creativity.
The application phase closes on 18 January 2026, and if you're interested, you can check how to apply to FCA’s Regulatory Sandbox for stablecoins.
Why Should You Care?
If you’re an entrepreneur working with crypto or blockchain technologies, participating in this sandbox is more than just a chance to test your product. It’s a chance to shape the rules under which stablecoin and blockchain products will operate in the UK. The FCA explicitly seeks collaboration with sandbox participants to validate policy proposals.
Imagine creating a stablecoin-based business model that can later claim it built its framework in collaboration with UK regulators. That's a massive trust signal for both investors and customers.
Here’s how involvement in the sandbox can directly benefit you:
- Safe Testing Environment: Test without fear of regulatory penalties.
- Industry Collaboration: Network with other fintech startups and tech giants shaping the crypto narrative.
- Policy Influence: Help design regulations that make crypto as viable as fiat currencies.
- Market Credibility: Boost your reputation by working in tandem with an institution that prioritizes compliance and legitimacy.
A Simple How-To Guide to Apply
Securing a spot in FCA’s sandbox can be straightforward:
1. Prepare Your Application Thoughtfully
Describe your product’s functionality, how stablecoins or blockchain are integral to solving a critical problem, and why UK-issued stablecoins make sense for your value proposition. This isn’t about selling your product; it's about showing your alignment with innovation and compliance.
2. Show Your Commitment to Compliance
The sandbox is for those committed to following the rules, not bypassing them. Make your case for ethical practices and how you’ll measure consumer risk and benefits through testing.
3. Emphasize UK Market Alignment
From a business perspective, demonstrate how your product can thrive under the FCA’s jurisdiction, not only for the UK but potentially as a gateway to broader European markets.
4. Be Ready for Iteration
Prepare a framework for improvement based on feedback during the sandbox period. If the FCA sees your flexibility to adapt, your chances increase.
For additional guidance and documents for applying, visit the FCA stablecoins sandbox overview: Stablecoin cohort details.
Common Mistakes You Need to Steer Clear Of
From my years of experience working with disruptive startups, here’s a list of pitfalls that I urge businesses applying for the sandbox to avoid:
- Failing to Demonstrate Use Cases: Don’t claim your stablecoin can “change everything.” Be specific about the problem your product solves.
- Ignoring Regulatory Feedback: Treat feedback from your sandbox experience as the gospel. Ignoring it won’t just lower your credibility, it could mean regulatory rejection.
- Overextending Predictions: Avoid forecasting wild market penetration unless you have verified data. Regulators spot overly ambitious claims easily.
- Neglecting Partnership Potential: Collaborating with other participants in the sandbox can strengthen your stance; isolation seldom works in cooperative ecosystems.
Industry Insights Worth Highlighting
Here’s why this sandbox initiative is particularly groundbreaking:
- According to FCA’s Executive Director, David Geale, "the sandbox gives innovative firms the chance to test stablecoin products under the UK's regulatory regime." Major firms have already joined, including one testing a GBP-oriented stablecoin.
- Eunice regtech's entry into the sandbox illustrates the FCA’s push toward industry transparency, especially for consumer protection. Stablecoins can benefit from standardized disclosure templates using blockchain technologies. Learn about Eunice’s transparency initiative.
Why the FCA’s Move is a Model for Global Crypto Regulation
As an entrepreneur with experience across Europe and the US, I find the FCA’s measured approach noteworthy. This isn’t about suppressing innovation through bureaucracy; it's about embracing it while promoting consumer trust and economic integrity, critical elements to survive in a digitally disrupted era.
This sandbox could serve as a model for other countries looking to manage innovation responsibly. Governments worldwide often wrestle regulatory rigidity and tech advancements, but the FCA's sandbox demonstrates how this balance can be struck.
Final Thoughts
For fintech experts eyeing a chance to define their stablecoin strategy, the FCA’s sandbox is a golden opportunity. By leveraging this platform, you position yourself to innovate alongside regulators, turning compliance into a competitive advantage. Innovation thrives where safety and transparency exist, a principle I’ve upheld across all of my ventures.
The sandbox isn't just about stablecoins; it’s about trust, collaboration, and creating enduring solutions. For startups with ambition, this framework is not merely optional, it’s essential. Competitive markets don’t wait for indecision. Make the first move before the application deadline looms.
If you'd like to read more on crypto regulation or fintech trends, check the FCA's latest updates on regulatory innovation initiatives. Startups who hesitate now will miss a powerful chance to lead tomorrow.
Are you ready to play the regulatory game? Take a leap! Transform your stablecoin ideas into tangible business strategies by immersing yourself in the FCA’s sandbox experience. As someone who's launched multiple ventures, I’ve learned that the strategic pioneers are the ones who thrive. Keep innovating, and know the regulators can be your partners.
FAQ
1. What is the FCA's Regulatory Sandbox?
The FCA's Regulatory Sandbox is a controlled testing environment where businesses can experiment with financial innovations without the need to meet full regulatory obligations at the outset. Learn more about FCA Regulatory Sandbox
2. What is the stablecoin cohort introduced by the FCA?
The stablecoin cohort is a special category under the FCA’s Regulatory Sandbox focused on allowing firms to test stablecoin products and services within the framework of the UK’s regulatory regime. Discover the stablecoin cohort details
3. When is the application deadline for the stablecoin cohort?
The application phase for the FCA stablecoin cohort closes on January 18, 2026. Find out how and when to apply for the FCA Regulatory Sandbox
4. Why is the FCA focusing on regulating stablecoins?
Stablecoins are growing in importance in the cryptocurrency market due to their low volatility and their potential uses in retail transactions, wholesale financial markets, and cross-border payments. Learn more about stablecoin regulatory challenges
5. How can participating in the Regulatory Sandbox benefit my business?
By participating, businesses gain access to a safe testing environment, policy feedback from the FCA, potential industry collaboration, and greater market credibility through compliance with regulatory standards.
6. What industries benefit most from the stablecoin cohort?
Entrepreneurs in fintech, blockchain technologies, regtech, and crypto platforms can leverage the stablecoin cohort to test innovative use cases and engage with the FCA to shape the future of regulation.
7. Which companies have joined the stablecoin cohort so far?
Examples include major firms like Eunice, which is working on developing disclosure templates to improve cryptoasset transparency. Learn more about Eunice’s initiative
8. How does the FCA's work on this sandbox support the crypto industry?
The FCA's project provides regulatory clarity and fosters innovation, helping establish the UK as a leader in crypto and stablecoin regulation. Explore FCA’s stablecoin regulatory approach
9. Can policy proposals be influenced through the stablecoin cohort?
Yes, the FCA encourages collaboration with sandbox participants to test and refine regulatory frameworks for stablecoins. Learn about UK’s unique chance for innovative firms
10. How does the stablecoin cohort differ from the general sandbox?
The stablecoin cohort is specifically designed for stablecoin issuers to test products aligned with UK supervision, offering a more focused area of experimentation. Discover the FCA’s plan for stablecoins
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.
