The Digital Securities Sandbox of His Majesty’s Treasury will have “a new rule set that would allow it to do new things with digital securities.”
By the first quarter of 2024, the United Kingdom will have its second crypto sandbox. It will emphasize digital securities explicitly.
Helen Boyd, director of capital markets at the Financial Conduct Authority (FCA), disclosed during her speech at the CCData Digital Asset Summit on October 3 that His Majesty’s Treasury intends to launch a Digital Securities Sandbox by the end of the first quarter of 2024.
Despite its legal status as an independent financial regulator, the FCA falls under the jurisdiction of the United Kingdom Treasury.
According to Boyd, the upcoming Digital Securities Sandbox will be distinct from the Digital Sandbox that the FCA introduced in August 2023.
The FCA’s Digital Sandbox intends to aid tech companies in the early stages of product development.
In contrast, the Treasury’s Digital Securities Sandbox will have “a new rule set that would allow it to do new things with digital securities.”
As specified in the official announcement of the Digital Securities Sandbox, it will afford corporations the opportunity to:
Boyd also elaborated on the FCA’s prospective role as the primary cryptocurrency regulator in the United Kingdom.
She explained that the agency is still awaiting a decision from the Treasury regarding the FCA’s authority.
The Treasury is considering a blanket ban on crypto investment cold calls, and the Financial Conduct Authority has issued a final warning to local crypto businesses that do not comply with its marketing regulations.
