UK Government to Cooperate With Crypto Industry on Legislation for Digital Securities Sandbox (DSS), that lets companies test new products with real customers under regulatory supervision.
The DSS will be overseen by the Bank of England and the Financial Conduct Authority, according to draft legislation published. It will allow businesses to test the distributed ledger technology that powers crypto to digitize or tokenize traditional securities and represent them on a blockchain.
The government said it planned to include assets including debt, equity and money-market instruments within the scope of the sandbox, something respondents had requested.
The government will work with the regulators and industry to identify any further legislative provisions that need to be brought into scope, and if necessary can facilitate this via further statutory instruments amending the DSS.
The UK remains of the most crypto-friendly jurisdictions, aside Singapore - Government sets out plan to make UK a global cryptoasset technology hub.
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