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.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2023

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Cover Vertex.jpg

Research

The proliferation of new perp DEXs has led to fragmented liquidity across various DEXs and chains. Vertex, known for its vertically-integrated DEX that includes spot, perpetual, and integrated money markets, is now tackling cross-chain liquidity fragmentation through horizontal integration with the launch of new Edge instances. Vertex's integrated offerings and cross-margined account structure amplify the benefits of new instances: native cross-chain spot trading, optimized cross-chain basis trading, consistent interest rates, reduced bridging friction, and more.

article-image

Partnering with EtherFi and Angle, the fully on-chain perp DEX features bespoke collateral

article-image

Sponsored

Gavin Wood introduced the next evolutionary step for the Polkadot network: the Join-Accumulate Machine, or JAM

article-image

The side events were the places to be at Consensus 2024, according to attendees

article-image

Also, who’s come out swinging in the spot ether ETF fee war — and who could undercut them

article-image

I know it is not in their nature, but US regulators could learn a lot by researching the digital asset frameworks that overseas regulators have already gotten right

article-image

Also, the ETF hype train can count out at least one member