ChainCatcher news, the Bank of England (BoE) and the Financial Conduct Authority (FCA) have launched a Digital Securities Sandbox (DSS), allowing companies to explore how to use Distributed Ledger Technology (DLT) for the notarization, maintenance, and settlement of financial securities.The FCA recognizes that developing technology has the potential to bring efficiency, transparency, and resilience to the market. The regulator stated that if these technologies are successfully implemented, they could make processes cheaper and faster, thereby "saving costs between the market and users." It emphasized that the DSS will facilitate the trading, settlement, and issuance of digital securities in the UK. This will be done on programmable and distributed ledgers while complying with the regulations of the Bank of England and the FCA.The FCA added that this initiative will strengthen the UK's position as a global financial center, creating the right conditions for investment and sustainable growth.

ChainCatcher news, according to Forbes reporter Eleanor Terrett on X, SEC Commissioner Hester Peirce announced a proposal for a joint "digital securities sandbox" between the US and the UK, where companies from both jurisdictions can establish a safe harbor. This allows for the secure experimentation of using blockchain technology for securities trading without the fear of regulatory warnings. In her letter, she proposed inviting the US to participate in the "sandbox," which was initially proposed for UK companies by the Bank of England and the Financial Conduct Authority.Peirce's proposal would enable the US Securities and Exchange Commission to establish a "micro-innovation sandbox," allowing US companies to:Use blockchain technology to conduct limited business in the US for trading securities without the fear of being targeted by regulators.The duration in the sandbox would be up to 2 years, with the possibility of extension.FinHub will assist companies in understanding and navigating the sandbox. Companies can choose some of their own regulatory rules but must adhere to certain government guidelines to protect investors.If the time in the sandbox is successful, companies may be able to graduate and continue their activities under special permission from regulators.

ChainCatcher news, according to Cointelegraph, the Bank of England (BoE) and the Financial Conduct Authority (FCA) will take a "proactive" and flexible regulatory approach through the Digital Securities Sandbox (DSS).Bank of England Executive Director Sashi Mills stated, "This will enable regulators to adopt new methods to maximize the potential benefits of innovation while managing financial stability risks. Through DLT, the DSS aims to alleviate inefficiencies in the 'post-trade environment,' which can lower the entry barriers for providers while enhancing the resilience of financial markets."

ChainCatcher news, according to The Block, the Bank of England has set autumn 2024 as the earliest time for the first applications to enter the digital securities sandbox.

ChainCatcher news, according to Decrypt, the UK Treasury has launched a new "Digital Securities Sandbox" (DSS) under the Financial Services and Markets Act, which will come into effect on January 8, 2024. It provides a firewall-protected financial laboratory to examine whether emerging technologies like blockchain can be used in the broader financial sector.The new DSS regulations will allow eligible financial market entities to participate as "sandbox participants," enabling them to conduct approved activities using developed technologies under modified regulatory requirements during a five-year trial period.

ChainCatcher message indicates that according to a document released by the UK Treasury, the UK will exclude "unsecured" cryptocurrencies from the Digital Securities Sandbox (DSS) program. The main goal of the DSS program is to create a more flexible regulatory environment for digital securities, including native digital securities and tokenized representations of existing securities.It will exclude "unsecured" crypto assets, including Bitcoin and Ethereum, which the Treasury collectively refers to as asset types closely related to the development of new technologies such as Distributed Ledger Technology (DLT), and this asset type also includes exchange tokens. (Source link)