Global Financial Innovation Network (GFIN) Plans To Create a “Global Sandbox” For “Cross-Border Solutions”
Blockchain technology and distributed ledger technology have been earning more interest from multiple industries around the world. To improve the growth of these technologies, regulators from Hong Kong, the United States, Australia, and other countries have developed an alliance. This alliance is being called the Global Financial Innovation Network (GFIN), which was originally announced by the U.K.’s Financial Conduct Authority (FCA). At the time, the FCA also announced the creation of a consultation paper, which was released on October 14th.
The goal of the GFIN is to establish a diverse group of regulators that plans to hold meetings regarding the current polices that impact financial technologies around the world. In a statement, they specifically stated their goal to create and launch a “global sandbox.” This service provides other institutions and firms with “an environment in which to trial cross-border solutions.
There are few details about the plan at the moment, so the public will need to wait for more to come. However, this alliance is following the FCA’s plan that they announced back in February, which was the concept of an international sandbox. So far, the main theme of the comments that the FCA has received has been regarding the global effort to make distributed ledger technology (DLT) a part of their cross-border payments. Another project seems to be the regulation of initial coin offerings, which may be difficult because they already span across other countries. However, this may be a good reason for regulation in the long run.
Multiple members of the Global Financial Innovation have already started their work on building the necessary framework for cross-border payments, specifically developed with DLT. Some of those members include the authorities in Singapore, Hong Kong, and Abu Dhabi.
Last month, eleven different blockchain-crypto startups were granted approval by the FCA for the sandbox program. So far, there have been 29 firms accepted, and that have permission to try out their products, given that they abide by the regulations that have been established.