UK Launches Digital Asset Sandbox for Financial Growth
The UK's economic strategy recently announced strong support for the digital asset sector.
Jeremy Hunt, the Chancellor of the Exchequer, introduced measures aimed at boosting the nation’s economy, including a key initiative to reinforce the digital assets domain.
A significant move involves the imminent establishment of the Digital Securities Sandbox (DSS) through new legislation. This sandbox aims to streamline the integration of digital assets into financial markets.
The government’s commitment to the DSS, building on earlier plans, was highlighted in the budget statement, following a consultation initiated in July.
Dina White, General Counsel at Zodia Markets, views the DSS as a pivotal shift in the securities industry, enabling firms to utilize digital asset technology in essential financial market infrastructure. Eva Gustavsson, Copper’s Head of Public Affairs, praised the commitment, emphasizing its role in fostering innovation.
Differentiating it from the existing Digital Sandbox by the Financial Conduct Authority, the DSS, as per FCA’s Helen Boyd, will introduce new rules customized for digital securities.
The initiative offers companies a chance to establish financial market infrastructures leveraging digital asset technology within an adjusted legislative and regulatory framework enacted via a statutory instrument.