This project is conducted by the English Financial Conduct Authority so that companies test new products and services within a controlled environment. A total of 29 companies have been accepted, among which stands out the Stock Exchange Group from London
The Financial Conduct Authority (FCA) from the United Kingdom said to 29 companies that they have been accepted within the fifth call in its regulatory framework for testing environments or sandboxes.
Launched in 2017, the British regulator’s sandbox provides companies with a secure environment to test their new products and services. It is open to any business or commercial entity that is authorized, or to unauthorized companies that request authorization, as well as to the companies that operate in the technological field.
Out of the 29 firms accepted in the last period, 8 companies decided to use Blockchain technology or the distributed ledger technology (DLT) to provide their products and services.
This is the fifth call made by the agency to date. According to an official announcement from the FCA, a total of 99 applications were received, which is the largest number until now.
Among the companies that applied, most belong to the financial sector. Some of the applicant companies are originally from the United Kingdom, but there are also some from other countries.
Important Companies on the List
Among the proposals that were accepted by the FCA the most prominent are digital identity solutions, tokenization platforms in the issuance of financial instruments and services aimed at improving the access of vulnerable consumers to financial services.
In addition, among them are some important companies such as the London Stock Exchange Group, which announced that it plans to integrate DLT into its securities trading venues.
Standard Chartered Bank also joined the regulatory platform. The banking institution, which is headquartered in London, is planning tokenization of retail deposits.
Diro Labs, an identity verification service that operates with Blockchain technology, is also part of the list. The Blockchain service can verify any individual or document directly and in an auditable manner.
Similarly, Fintech Delivery Panel Partners struggle to allow consumers to gain control of their digital identities, as well as to guarantee that the identities verified in the ports of the companies comply with the obligations of Know Your Customer (KYC) and due diligence.
Other projects include the management of real estate investments, a cash flow management platform and a platform called Fractal, which facilitates the financing of small to medium enterprises (SMEs) and the securitization of debt through the digitization of credit applications.
Support for the Blockchain Ecosystem
The aim of the FCA with the call is to offer companies the opportunity to test their products and services in a controlled environment. In order to do this, the time for launching into the market is reduced at a lower cost. Among the objectives is to identify adequate ways to protect consumers’ investment, as well as provide them with better access to financing.
Each test conducted in the environment provided by the FCA must have a clear objective and be conducted on a small scale. In this way, companies can test their innovations for a limited time, with a specific number of customers.
This is how the FCA explained it in a statement that says, “Tests will be conducted in the short term and on a small scale,” and it adds:
“We work closely with each firm to agree on the test parameters and establish adequate guarantees for the consumer.”
The British government has been working hard to provide a friendly framework for businesses related to Blockchain. There is still some lack of regulatory certainty around cryptocurrencies, but initiatives like this offer the necessary security and support for companies that wish to operate and grow within the sector.
By Willmen Blanco