Four Blockchain Firms Selected for Third Phase of UK’s Regulatory Sandboxbr>
The UK Financial Conduct Authority (FCA) has released the names of the firms that were selected in the latest phase of its regulatory sandbox.
The FCA sandbox, first opened for application in June 2016, allows businesses to test out new products and services without incurring the normal regulatory consequences. The move is part of the FCA’s Project Innovate, which aims to boost competition and growth in financial services.
The third phase of the sandbox attracted 61 submissions, 18 of which have been approved including four blockchain-based companies. The four blockchain firms are Chynge, Etherisc, ResonanceX, and Solidi. Tests will be conducted on a short-term and small-scale basis, and the FCA has worked with the sandbox firms to agree to testing parameters, building in consumer safeguards.
“Since we first opened the sandbox, it has supported almost 70 firms in testing innovative new products and services,” said Christopher Woolard, executive director of strategy and competition at the FCA. “It is particularly encouraging that we are now seeing more applicants from outside London and a broader range of firms testing in the sandbox. As we open the application window for our next sandbox cohort, we continue to encourage applications from firms of all sizes and from a wide range of sectors, including sectors we haven’t seen heavily represented in the sandbox to date.”
In the second phase of the sandbox, 31 firms were accepted, nine of which are blockchain-related.
The FCA is now accepting applications from companies to be part of their fourth sandbox. Firms have until January 31, 2018 to submit their applications.