FCA hopes to launch digital securities Sandbox by Q1

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FCA hopes to launch digital securities Sandbox by Q1

By the end of Q1, the British Treasury is hoping to launch a Digital Securities Sandbox next year, according to Helen Boyd, head of capital markets at the independent regulatory watchdog, the Financial Conduct Authority.

A sandbox is a test environment for those who want to bring innovative products to the market. The FSA has a similar engagement via its Regulatory Sandbox, where companies with viable products can begin pitching them to a closed circle of early customers.

When asked to explain what the role of the FCA would be in regulating crypto, Boyd explained that the FCA's powers come from HM Treasury, the UK's finance ministry.

Once that's done, Boyd said, theFCA will be in a position to take forward those new powers and work out what the regulatory framework is that we will be writing the rules for. She added that the FCA will aim to field a great deal of comments from the industry.

Crypto firms advertising in the UK have until October 8 to get in line with the regulation's current financial promotion regime. To get approved, all companies must apply and pay a fee.

It's not just the federal government targeting domestic crypto firms, he said. The FPA has ruled that if a company's marketing scheme reaches or influences British customers in any way, it will fall under the FCA's purview.

There will be four channels for legally communicating crypto ads to UK customers, all of which require approval from an FCA-regulated body.

The FCA said failure to comply can result in two years' imprisonment, a fine, or both.

Helen Boyd said that certain firms running late for registration could be able to get an extension.