Today, the Bank of England and the Financial Conduct Authority (FCA) initiated a consultation regarding the UK’s five-year Digital Securities Sandbox (DSS). This initiative is designed to foster innovation by temporarily easing the requirements for central securities depositories (CSDs), enabling tokenization experimentation with distributed ledger technology (DLT) for digital securities trading and post trade.
Following a consultation conducted by HM Treasury last year, the DSS legislation was activated on January 8. The focus of the current consultation is on the operational specifics.
“The new Digital Securities Sandbox reshapes how we regulate by allowing firms to test regulatory changes using real world situations before these changes are made permanent,” said Sheldon Mills, Executive Director, Consumers and Competition at the FCA. “We hope this will be a more effective, collaborative and quicker way of delivering regulatory change.”
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