The Financial Conduct Authority (FCA) of the United Kingdom has included in its regulatory sandbox 11 companies linked to the blockchain sector, which will be put to the test in a secure environment to evaluate its possible implementation in the British financial system. This figure represents 40% of the 29 companies accepted to participate, of 69 in total that applied to be part of this group and that belong to the credit, automated financial advisory and insurance areas.
In an official announcement published recently, it was specified what kind of tests and evaluations the companies would be carrying out, also clarifying that a significant number of them would be working on cryptocurrencies and Distributed Accounting Technology (DLT).
We have accepted a number of signatures that will be evaluating proposals related to the cryptoactives. We are willing to explore in a controlled environment if the benefits of the consumer can be realized by adequately managing the related risks.
Thus, they indicate that the tests will be carried out on a small scale and in the short term and that the parameters of these will be defined jointly with the regulatory authorities.
One of the listed companies, named 20 | 30, will be working in partnership with the London Stock Exchange and Nivaura, a British financial services company that has worked with the DLT before, in the development of a platform that uses this technology to optimize the way in which companies raise capital.
Other companies that use blockchain technology are BlockEx, which aims to facilitate the issuance and administration of regulated bonds; Capexmove that, like 20 | 30, uses this technology to allow small businesses to raise funds, and Etherisc, which seeks to decentralize air travel delays insurance through the use of smart contracts.
The regulatory sandbox of the FCA was launched just over two years ago, in June 2016, seeking to establish successful regulations for the financial sector along with those companies that present innovative business models and services. Distributed Accounting Technology is undoubtedly part of these disruptive business sectors, so it is no surprise that the institution has decided to open the doors.
During this year, the entity published its strategic plan for the 2018-2019 fiscal year, which is expected to publish by the end of 2018 the position of the institution in terms of cryptocurrencies and the new markets created around these financial assets. His position will be worked within the FinTech sector with the Bank of England and the Treasury Department.