The FCA has announced the successful applicants to its Regulatory Sandbox Cohort 2.
BlockEx has been one of those successful companies!
This is fantastic news for the company who is developing innovative uses for blockchain technology in capital markets, specifically with regards to the issuance and lifecycle management of traditional assets such as bonds, issued onto underlying blockchain infrastructure. Exciting times lay ahead for BlockEx who will shortly be testing its innovative blockchain based products and services within the safe conceptual space of the FCA sandbox.
The aim of the sandbox is to:
- reduced time-to-market at potentially lower cost
- appropriate consumer protection safeguards built into new products and services
- better access to finance
The FCA states that the sandbox offers tools such as restricted authorisation, individual guidance, waivers and no enforcement action letters. The FCA will closely oversee trials using a customised regulatory environment for each pilot – including safeguards for financial consumers.
This is a step forward for a blockchain company wanting to operate in the UK’s financial industry which is heavily regulated. Technological attributes of blockchain technology in certain applications in capital markets aggregates a number of traditional separate financial activities which is why it is imperative that BlockEx works with the regulator.
The tests will be reviewed by both the firm and the firm’s sandbox to assess the test against a range of success measures. BlockEx is using this opportunity as a stepping stone to becoming a fully authorised financial service provider in the UK.
For more information on the FCA and the Sandbox please visit their website:
Adam Leonard, BlockEx CEO