UK launches digital securities sandbox consultation

The UK Banking and Financial Conduct Authority (FCA) has launched a consultation on the UK Five Year Digital Securities Sandbox (DSS). This measure aims to temporarily relax the requirements of central securities depositories (CSDs), promote innovative experiments in digital securities trading and subsequent trading, and achieve tokenization experiments on distributed ledger technology (DLT). Sheldon Mills, Executive Director of Consumer and Competition at FCA, said, "The new digital securities sandbox reshapes our regulatory approach by allowing companies to test regulatory changes using real-world conditions before these changes become permanent. We hope this will be a more effective, collaborative, and faster way to deliver regulatory changes."