UK Watchdog Allows Three Blockchain Firms to Join Regulatory Sandbox
Three blockchain-focused firms are among the latest 29 companies accepted into the U.K. financial watchdog’s regulatory sandbox.
Diro Labs is one of the blockchain-driven companies accepted by the FCA for performing tests on a “short-term and small-scale basis.” According to the regulator, the startup uses a “central blockchain-based store of information” to verify identities and documents online from original sources.
Meanwhile, Fintech Delivery Panel Partners has been given permission to test a “decentralized digital identity platform using machine learning identity verification and blockchain-based key management.”
Finally, e-commerce payments and verified digital identity platform Nuggets intends to test the “storage of personal and payment data securely with blockchain, and the use of this data to access financial services products.”
The regulator said it received a record number of 99 applications to join the fifth cohort of its sandbox from firms operating both in the U.K. and overseas. It explained:
“Examples of propositions that have been accepted include digital identity solutions, platforms which tokenize issuance of financial instruments, and services aimed at facilitating greater access to financial services for vulnerable consumers.”
According to the FCA, regulatory sandboxes enable companies “to test innovative propositions in the market with real consumers.”