UK Regulator Grants 3 Blockchain Firms To Join Regulatory Sandbox; Diro Labs, Nuggets and DPP
The Financial Conduct Authority (FCA), one of the major financial regulators from the United Kingdom, has recently decided to allow three blockchain companies to join its regulatory sandbox, as it was announced yesterday, April 29. The three companies are Fintech Delivery Panel Partners, Diro Labs, and Nuggets. All tests will be short-termed and will have a small scale.
Fintech Delivery Panel Partners is a U. K.-based company which will use the sandbox to test a decentralized digital ID platform that will leverage the usage of technologies like machine learning and the blockchain to verify IDs automatically and store the keys in an encrypted way.
Diro Labs is the second company, which uses a centralized blockchain to store information and to provide the verification of both documents and identity online, being somewhat similar to the first one.
The other company is Nuggets, an e-commerce payments platform which is also focused on digital identity, which seems to be the common trend among all the three selected companies by the FCA. Nuggets will use the blockchain to store data that will be used for the products of the e-commerce system.
According to the FCA, 99 applicants tried to join this phase of the regulatory sandbox, as these firms knew that they would be benefited from using their own experiences in order to shape the market in their favor. The FCA affirmed that the trends of which these companies are a part of our identity solutions, tokenization of financial assets and services that facilitate important services for the most vulnerable consumers.
Regulatory Sandboxes Have Become Quite Popular
Regulatory sandboxes, according to the FCA, are important to innovate and to test the market with real consumers. In fact, as they let the companies and regulators discover how a business will actually work and devise solutions, they are important.
It is because of this that these solutions are getting so popular right now. Even the Reserve Bank of India (RBI), which has banned cryptos in India, is trying a sandbox at the moment, which just shows how this kind of program can be important when you have to decide which kind of laws to shape for the innovative industry.