GSTechnologies Ltd (LSE:GST) said it has received verbal confirmation from the UK Financial Conduct Authority (FCA) regarding the eligibility of its stablecoin application for the Regulatory Sandbox.
The company anticipates a formal decision in mid-May 2023 as it continues to assist the regulator with its application review.
The announcement followed a sharp rise in the share price on Friday. The stock opened Tuesday's session 24% higher and has advanced over 250% across the past five trading days.
The FCA's Sandbox is a regulatory framework designed to support innovative businesses in testing their products, services, and business models in a controlled environment under the financial watchdog's supervision.
It allows companies to explore and experiment with new ideas, identify potential regulatory issues, and ensure compliance with the necessary regulations before rolling out their offerings to the wider market.