UK to Launch Second Crypto Sandbox Focused on Digital Securities in 2024
Summary:
The United Kingdom is set to launch its second crypto sandbox focusing on digital securities in Q1 2024, as stated by Helen Boyd, Head of Capital Markets at the FCA, during the CCData’s Digital Asset Summit. Unlike the FCA's current Digital Sandbox supporting tech start-ups, the new HM Treasury's Sandbox will facilitate businesses with new regulations for more advanced digital securities experimentation. The agency is also waiting for a decision on its future role and extent of control as the primary crypto regulator in the UK. Hence, this comes amidst stringent regulatory stance by British authorities on digital assets.
In the first quarter of 2024, the United Kingdom is expected to launch its second crypto sandbox, specifically designed for digital securities. The Head of Capital Markets at the Financial Conduct Authority (FCA), Helen Boyd, divulged this during her oration at the CCData’s Digital Asset Summit on October 3. She mentioned that the planned Digital Securities Sandbox is an initiative by His Majesty's Treasury, falling under its authority despite the FCA being a legally independent financial watchdog. Contrasting it with the already operational Digital Sandbox, initiated by the FCA in August 2023 to assist tech companies in initial stages of product creation, Boyd stated the new Sandbox from HM Treasury shall have novel regulations allowing further experimentation with digital securities. As detailed in the official declaration, this new Sandbox aims to facilitate businesses in creating financial market infrastructures exploiting digital asset technology under a temporary altered legislative and regulatory environment. Besides discussing HM Treasury’s sandbox, Boyd also threw light on the FCA's upcoming role as the primary overseer for crypto in the UK, stating that they are still awaiting the HM Treasury's resolution regarding the extent of control to be allocated to the FCA. In recent times, the British regulators have showcased their stern approach to digital assets, with considerations of imposing an outright ban on unsolicited investment calls relating to crypto by the HM Treasury and issuing definitive alerts against local crypto enterprises failing to adhere to the FCA's marketing guidelines.
Published At
10/4/2023 7:56:28 AM
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