The UK makes cryptography a priority for streamlining the market

The Treasury will begin live testing of crypto blockchain technology for traditional market activities such as equity and bond trading and settlement next year as part of its impetus to become a global “crypto hub” on Tuesday. It’s a schedule.

The use of distributed ledger technology (DLT) to support crypto assets is a key priority for users to make their financial market infrastructure more innovative and efficient, said Gwines Nurse, director of financial services at the ministry. Said.

Next year, the UK will launch a financial market infrastructure “sandbox” to test DLT projects under regulatory control, and the UK regulator says it is a model pioneered to foster fintech companies. He said. A sandbox is a test environment for a project that involves real customers.

In financial markets, trading stocks, bonds and other assets traditionally involves three different activities: trading, clearing and settlement. With DLT, this is changed so that financial assets such as bonds and stocks can be issued in hours instead of days or weeks.

“The government may also want to test how transactions and payments are integrated,” the nurse told the annual IDX Derivatives Conference in London.

“Sandboxes allow us to test new regulatory best practices and make permanent changes to benefit market users.”

Sandbox will be introduced with the regulation of Stablecoin (a cryptocurrency backed by traditional financial assets) under a new financial services bill before Congress this year.

Industry insiders told Reuters last month that they need digital currencies to take full advantage of DLT in their market infrastructure.

The Treasury and the Bank of England will hold further public consultations later this year to jointly evaluate the digital pound, according to Nurse.

But even if a decision is made to move forward with the so-called central bank digital currency or CBDC, which other central banks are also considering, the digital pound will not be available until the second half of the next decade, Nurse said.

The European Union has completed its own sandbox for the market and new rules for the crypto market.

“The EU is making great strides,” said Julia Kolbe, Head of Market Policy for Deutsche Bank’s Government and Regulatory Advocacy. The UK makes cryptography a priority for streamlining the market

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