Financial Conduct Authority Approves Crypto Companies for 4th Cohort of Regulatory Sandbox
One of the most important regulatory agencies in the country, the Financial Conduct Authority (FCA), unveiled on July the 3rd, all the firms that were successfully approved to begin testing the fourth cohort of the sandbox.
The City regulator named some cryptocurrency and blockchain-related firms as accepted to test their ideas, projects and solutions in a live market but under a controlled environment. The regulatory agency received 69 different submissions for the fourth phase of this regulatory sandbox, and just 29 applications were able to be eligible.
At the same time, the UK regulator explained that 40% of the companies accepted are working with blockchain technology. The agency said that the intention is to see whether, in a controlled environment, the benefits of distributed ledger technology can be delivered managing the associated risks.
This sandbox allows companies and business applicants to carry out trials with consumers for a period of three to six months. In the past, the sandbox has proved to be highly successful in analysis and control on the market. Additionally, it is possible to assess different options to scale up the model.
Christopher Woolard, director of Strategy and Competition at the FCA, explained:
“I am pleased to say that this is the largest sandbox cohort to date with a record number of applicants meeting our eligibility criteria. Cohort 4 has seen a large increase in the number of firms testing wholesale propositions including firms that are aiming to increase the efficiency of the capital-raising process.”
One of the most important cryptocurrency business accepted is the so called TokenCard, which is described as a ‘depositless Ethereum token-based debit card & platform.’ The firm also commented that it allows users to load virtual currencies onto a card and use it like any other card in the market.
Another important company is Fineqia, a blockchain digital platform that enables companies to issue and administer debt and equity securities.
During the last week, the UK Prudential Regulation Authority wrote a letter to different banks, insurance companies and investment firms to give advices about the associated risks of dealing with crypto-related assets. The letter was able to provide financial operators with guidelines that helped them improve their oversight, scrutiny and more.