The British government has announced legislation for the digital asset sector in the country. This is the creation of the Digital Securities Sandbox (DSS), a program designed to strengthen and energize British financial markets.
Made up of 110 measures led by Chancellor Jeremy Hunt, the DSS is expected to come into operation in early 2024.
Overseen by the Bank of England and the Financial Conduct Authority (FCA), the DSS is distinguished by its ability to enable businesses to develop new financial products and services through the use of digital assets.
It will facilitate the creation and operation of critical systems, such as central securities depositories and trading venues, using the latest digital asset technology in the UK. Furthermore, it opens up new possibilities by allowing the integration of various assets into broader financial activities, including as collateral.
As stated, the implementation of the DSS is scheduled for the first quarter of 2024, after receiving a positive response from the government to a public consultation launched in July.
It is worth mentioning that the government has decided to exclude unbacked cryptoassets. This decision is based on the absence of an established regime for these assets, which could be modified within the sandbox.
The FCA’s Helen Boyd said the Digital Securities Sandbox will operate under a new set of rules, focusing specifically on digital securities and their applications in financial market infrastructures.