UK Treasury Starts Discussions on Digital Securities Sandbox | CoinDesk JAPAN | Coin Desk Japan

Digital bonds and equities could benefit from deregulation for about five years, according to a consultation document released by the UK Treasury on July 11.

A new ‘sandbox’ for innovative securities based on distributed ledger technology (DLT) could make markets more efficient, transparent and resilient, the UK government says. said it wants to apply the new rules signed two weeks ago.

“The use of digital assets has the potential to truly transform financial markets,” said a Treasury advisory document. “It is important that the market can benefit in a safe manner while preserving the performance of existing regulations.”

The UK Treasury said new powers granted under the Financial Services and Markets Act 2023 said the new technology would allow securities trading to “substantially deviate from existing practices” and operate at night and on weekends. or be settled immediately instead of days later, he said.

The relaxation will be in place for up to five years and will apply at least to digital stocks, bonds and money market instruments, but not to derivatives and unbacked crypto assets such as Bitcoin (BTC) and Ethereum (ETH).” does not apply to Officials point to an evolving regulatory framework.

Last year, then-Finance Minister and now Prime Minister Rishi Sunak said he wanted the UK to become a cryptocurrency hub. Since then, proposals have been made for stablecoins, crypto promotions and a possible digital pound issued by the Bank of England, but the industry has complained that the government has been slow to act compared to its rivals. there is

The European Union’s landmark cryptocurrency market regulation is due to come into force next year, and a pilot project to test DLT securities trading is already underway.

The UK Treasury has until August 22nd to solicit views on its plans for a digital securities sandbox.

｜Translation: CoinDesk JAPAN
｜Editing: Toshihiko Inoue
| Image: Chris James/Flickr
｜Original: UK Treasury Starts Consultation on Five-Year Digital Securities Trial