UK set to launch crypto sandbox Jan. 8 

Starting Jan. 8, 2024 the Financial Services and Markets Act of 2023 will apply to companies participating in and applying to the Digital Security Sandbox in the UK

share

Starting Jan. 8, 2024, the Financial Services and Markets Act of 2023 will apply to companies participating in and applying to the Digital Security Sandbox, according to documents released Monday. 

UK-based investment exchanges, recognized central counterparties and central securities depositories and investment firms are permitted to apply to participate in the sandbox, the regulations state. 

The program is designed for applicants looking to operate trading venues and intermediaries providing services to digital asset companies. 

Read more: Even the Bank of England is part of a shift to blockchain use cases

Digital assets and distributed ledger technology (DLT) could be used by what it calls financial market infrastructures (FMIs) — networks that allow financial transactions to take place — to boost efficiency and cost effectiveness, government officials said. 

The “appropriate regulator,” as determined by the type of applicant, will decide whether or not a company is admitted to the sandbox program, the regulations add. 

The UK announced the sandbox earlier this year and the Financial Conduct Authority (FCA) and the Bank of England collaborated with HM Treasury to establish the guidelines. 

“It is important that this does not lead to inertia in the legislative and regulatory space, but to acknowledge instead that the job of re-working financial services legislation and regulation will be an ongoing process that may take many years,” HM Treasury said in an August report. 

Read more: FCA discussion paper advances UK stablecoin framework

The regulations published Monday follow the “Call for Evidence” HM Treasury conducted in 2021 to examine the application of DLT and FMIs. 

The agency then published a response in April 2022, which stated that the UK’s legislative framework was not built to support the use of DLT, adding that testing would be needed.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

Bain Capital Crypto and Haun Ventures co-led the round as demand grows for Bitcoin-denominated savings and annuities

by Blockworks /
article-image

NYSE owner’s investment values the prediction market at $8–9 billion, signaling Wall Street’s entry into event-based trading

by Blockworks /
article-image

Pineapple begins deploying its $100 million Injective Digital Asset Treasury, staking INJ to earn yield and fund onchain mortgage ambitions

by Blockworks /
article-image

Staking levels in the ether funds will depend on protocol unstaking queue times and anticipated redemption activity, firm says

article-image

ETF inflows, miner strength, and tightening supply drive Bitcoin past its prior peak amid renewed demand for scarce assets

by Blockworks /
article-image

The Guidestar team, led by Alex Nezlobin, will join Uniswap Labs to enhance automated market maker design and smart order routing

by Blockworks /