40% companies in Regulatory Sandbox Using Distributed Ledger Technology in UK
The Financial Conduct Authority (FCA), UK has revealed the 29 companies that have been successful in applying to the fourth cohort of the regulator’s sandbox, where 40 % are using distributed ledger technologies (DLT) as per an announcement on July 3
The regulatory sandbox is an enterprise to help companies test different products and services in a live market surrounding with the right amount of customer safety but without restrictive regulation. The sandbox is a component of the “innovate” initiative launched in 2014 to deliberately promote competition. Till now, Innvoate has so far gotten more than 1200 applications and supported over 500 firms.
The FCA got 69 entries to partake in the fourth round of the sandbox, 29 of which will start with testing. More than 40 percent of the organizations are applying DLT, where six organizations are utilizing DLT to automate the issuance of equity or debt. Two are applying DLT to back insurance provision, and the others are utilizing DLT in the fields of Geo-location technology, Application Programming Interfaces (APIs), and man-made consciousness (AI).
The controller, likewise uncovered that “a small number” of the organizations approved for testing are identified with “cryptoassets.” They will supposedly analyse whether their answers are proper to serve clients while “effectively managing the associated risks.” The executive director of Strategy and Competition at the FCA, Christopher Woolard said that it is “the largest sandbox cohort to date with a record number of applicants meeting our eligibility criteria”
“…Cohort Four has seen a large increase in the number of firms testing wholesale propositions including firms that are aiming to increase the efficiency of the capital-raising process. Alongside these we can see significant use of [DLT], some experimentation with cryptoassets which will help inform our policy work and propositions aimed at helping lower income consumers.”
The FCA introduced its global fintech regulatory sandbox, after the triumphant development of their release of a UK sandbox in March of this year. Woolard at that time stated that he sees a demand for a sandbox on a worldwide level for companies “grow at real scale and pace.”
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