FCA Announced the Creation of the "Global Sandbox" Jointly with 11 Regulators from Other Countries
Financial regulators from all over the world form a new alliance, the main objective of which will be to provide assistance in the development of fintech, including the blockchain and technology of the distributed ledger technology (DLT).
The UK regulator (FCA), together with the relevant authorities of 11 other countries such as Hong Kong, the United States, Australia, etc., announced the forthcoming creation of the Global Financial Network (GFIN). This network will function to discuss the current financial technologies in the world, and will also serve as an initial step in the further development of a "global sandbox" in which companies will be given the opportunity to "test cross-border solutions".
At the moment, from the application of the FCA, little has been learned. But if we return to the events of February this year, we recall that the UK Financial Regulation Authority has requested consultations on the idea of creating such an international global sandbox. And that was long before the formation of the alliance. Then the regulator managed to collect about 50 responses on this topic. The key topic for most of them was the organization of the possibility of testing cross-border payments for companies from different parts of the world, as well as co-regulation of the initial placement of coins, which became characteristic to be held in several jurisdictions.
It is worth noting that some of the members of the GFIN alliance are already actively working on cross-border corridors built using DLT technology. These include organizations such as the Monetary Authority of Singapore, the Hong Kong Monetary Authority and the Abu Dhabi Global Market. And FCA, in turn, only last month granted access to its sandbox program to 11 cryptocurrency startups, which account for about 40% of companies that had access to testing their projects in a regulated environment.
In addition to the official statement from the FCA, the regulators published a document aimed at receiving feedback and comments on the GFIN.