It is a Lysiosquillina. To keep them in a naturalistic setting, you would need about a foot of sand, but they will also do reasonably well in a long section of 2.5 or 3" pvc.
Actually, the sand bed is not a problem. We use a sump or satellite tank that we make ourselves. Size will depend on the animal, but a good size is 24'long by 18" tall by 5" wide. Fill the tank with about 12 inches of and, position it next to a large aquarium and use a small pump to feed water into the tank and siphons to return it to the main tank. You don't need much flow - about 5-10 gal/hour. With luck, the Lysiosquillina will dig a burrow in the sand stabilizing it with mucus. Usually you will be able to see parts of the burrow along the bottom or sizes of the glass. Cover any exposed parts of the burrow with black tape. This will allow you to view the animal occasionally without causing it to cover over the exposed burrow wall. I've kept many lysiosquillids this way and some have lived for 5 years or more.
Roy