It is clear that the UK will get its second crypto sandbox by the first quarter of 2024. It will clearly focus on digital securities.
During it letter At CCData’s Digital Assets Summit on October 3, the head of capital markets at the Financial Conduct Authority (FCA), Helen Boyd, revealed that the UK Treasury is planning to launch a sandbox for digital securities at the end of the first quarter of 2024. As a financial regulator Independent, the Financial Conduct Authority (FCA) falls under the jurisdiction of Her Majesty’s Treasury.
According to Boyd, the upcoming digital sandbox for securities will differ from the already operational digital sandbox, which the Financial Conduct Authority (FCA) launched in August 2023. The FCA’s digital sandbox aims to support early-stage technology companies of product development, while HM Treasury’s Digital Securities Protection Fund will support technology companies in the early stages of product development. It has “a new set of rules that will allow it to do new things with respect to digital securities.” As the official announcement of the digital securities sandbox He specifiesIt will give companies the opportunity to:
“Creation of financial market infrastructures using digital asset technology, which can carry out a number of activities related to digital securities within a temporarily modified legislative and regulatory framework.”
Boyd has also spoken about the future of the Financial Conduct Authority (FCA) as the main cryptocurrency regulator in the UK. She explained that the agency is still awaiting the Treasury Department’s decision regarding the amount of powers that should be granted to the Financial Conduct Authority.
Related: The UK travel rule comes into force and could halt some cryptocurrency transfers
British regulators have been getting tough on the digital asset industry recently, with the UK Treasury considering a blanket ban on cold calls for investing in cryptocurrencies, and the Financial Conduct Authority (FCA) issuing a final warning to domestic cryptocurrency companies that do not comply with its marketing rules.