The UK Financial Conduct Authority (FCA) has unveiled the 29 companies that successfully applied to the fourth cohort of the regulator’s sandbox, 40 percent of them are now using distributed ledger technologies.
One goal of this initiative is to help organizations test products and services in a live market environment without restrictions, while also protecting consumers.
The sandbox is part of an initiative that was launched in 2014, “Innovate”, this initiative was intended to promote competition. At present date, Innovate 500 firms and received around 1,200 applications.
69 submissions were received by the FCA, and will participate on the fourth round of Sandbox, 29 of which will start the testing. More than 40 percent of the firms are now applying DLT. Some are using DLT to automate the issuance of debt or equity others are using it to back insurance provisions. There are also some who are using DLT and deploying them into geo-location technology fields, artificial intelligence, and application programming interfaces.
Sandbox also revealed that there are smaller number of crypto-companies are being approved for testing. They will first analyze the risks involving the matter, and see whether their solutions are appropriate to serve customers while “effectively managing the associated risks.”
The executive director of Strategy and Competition at the FCA, Christopher Woolard said that it is “the largest sandbox cohort to date with a record number of applicants meeting our eligibility criteria”
Just this year in March, after their successful development of Sandbox was released in UK, the FCA introduced its global fintech regulatory sandbox, Woolard then said that he sees a need for a sandbox globally to “grow at real scale and pace.” Woodlard also said that 90 percent of the companies who join the first round of sandbox have “gone on to market.”