UK introduces new regulations for its Digital Securities Sandbox
Quick Take The UK has introduced new regulations for supervising the nation’s Digital Securities Sandbox.
The UK has introduced new regulations that will give the nation's financial watchdogs rules for supervising a sandbox for tokenized securities, according to an official publication on Monday.
The regulations will be for the UK's Digital Securities Sandbox, DSS, and they come into force on Jan. 8, 2024. They are part of the UK government's Financial Services and Markets Act 2023, or FSMA.
Regulations for supervising the Digital Securities Sandbox
The new rules set the overall limitations on what can be carried out within the sandbox and which participants are eligible for involvement. The sandbox will let regulators and companies test solutions, including distributed ledger technology and the tokenization of securities.
The UK Treasury stated that oversight of the new regulations will be a joint effort between the Bank of England and the Financial Conduct Authority , FCA. "The Bank and the FCA must take such steps they consider appropriate to co-operate with each other in connection with the operation and supervision of the DSS," the legislation said.
The development comes after UK Chancellor of the Exchequer Jeremy Hunt outlined in his November budget statement a new governmental initiative to facilitate the expansion of the digital assets sector in the UK.
The UK's Digital Securities Sandbox
In November, Hunt said the UK government planned to implement the Digital Securities Sandbox , which aims to facilitate the adoption of digital assets across financial markets.
"The government will lay a statutory instrument to implement the Digital Securities Sandbox, delivering on the Edinburgh Reform announcement to implement a Financial Market Infrastructure Sandbox in 2023," the finance minister said.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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