BoE/FCA: Digital Securities Sandbox

BoE and FCA are consulting on their proposed approach to operating the Digital Securities Sandbox (DSS). The DSS is an initiative run by the regulators that will help facilitate the adoption of innovative technology in digital assets in the UK.  The consultation invites views on how the DSS will operate in practice, in order to maximise the potential benefits from the technology while protecting financial stability and market integrity.  It is noted that the DSS will last five years and may lead to a new permanent regulatory regime for securities settlement under which firms could operate in future. The Government has the tools to put in place permanent changes reasonably quickly. In order to protect financial stability, activity in the DSS over this period will be subject to limits.  Responses to the consultation are required by 29 May 2024.