Fourteen Cryptocurrency Firms Joins UK FCA’s fourth cohort of regulatory sandbox
The UK Financial Conduct Authority (FCA) has published the names of the 29 firms selected for the latest cohort of the regulatory sandbox.
The regulatory sandbox aims to allow businesses to explore innovative products, services or business models in a live market environment, while effectively managing the associated risks. The latest cohort marks the fourth round of the regulatory sandbox which was first launched in 2016.
The FCA pointed out that 40 percent of companies accepted to cohort four are using DLT – six are using DLT to automate the issuance of debt or equity, while two are using DLT to support the provision of insurance.
The DLT and cryptocurrency-focused startups selected for the fourth cohort include BlockEX, Capexmove, Etherisc, Fineqia, Fractal, Globacap, Natwest, Token Market, Tokencard, Universal Tokens, World Reserve Trust, 20|30.
This year, the regulator has also accepted a small number of firms that will be testing propositions relating to crypto assets. The FCA said that it is “keen to explore whether, in a controlled environment, consumer benefits can be delivered while effectively managing the associated risks.”
“Cohort 4 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 distributed ledger technology (DLT), some experimentation with crypto assets which will help inform our policy work and propositions aimed at helping low-income consumers,” Christopher Woolard, executive director of Strategy and Competition at the FCA, said.