According to an official statement published on December 18, the United Kingdom has introduced new regulations that will provide rules for overseeing a digital space for tokenized securities. These regulations will be applicable to the United Kingdom’s Digital Securities Sandbox (DSS) and will come into effect on January 8, 2024.
The new rules are part of the process carried out by the UK government under the 2023 Financial Services and Markets Act (FSMA). The rules highlight general restrictions on what can be done in the digital space and who can participate in this process.
The process prepared in the digital space will allow legal regulators and companies to test solutions, including distributed ledger technology and the tokenization of securities. The UK Treasury announced that the new regulations for the process will be jointly supervised by the Bank of England and the Financial Conduct Authority (FCA).
This development is in line with the new government initiative announced by UK Chancellor of the Exchequer Jeremy Hunt in his November budget statement, which will facilitate the expansion of the crypto asset sector in the UK.
In November, Hunt announced plans to implement the Digital Securities Sandbox to facilitate the adoption of crypto assets in financial markets. Additionally, the UK continues to attract attention with legal regulations for the crypto market following the US. However, strict criteria set for crypto companies in the process are causing many companies to cease their operations in these countries.