40% Companies of UK's Sandbox to Use Blockchain

Companies use distributed ledger technology for different goal, from debts to API
04 July 2018   317

The Office of Financial Conduct Authority (FCA) of Great Britain published a list of 29 companies that will become participants of the fourth group in the "sandbox" of the regulator. 40% of these companies use distributed registry technology, Cointelegraph reports.

FCA Sandbox is an initiative that helps companies test their products and services on a "live" market. At the same time, the regulator assumes the protection of consumers and, at the same time, does not limit the company. "Sandbox" was part of the initiative called "Innovate", which was launched in 2014. Since then, applications for participation in Innovate have been submitted by more than 1,200 companies, and about 500 have received support.

For the fourth round of participation in the "sandbox" 69 applications were submitted, of which 29 companies were selected. Interestingly, more than 40% of them use distributed ledger technology in their activities, with six companies using it to automate the issuance of debt or capital. In addition, two companies use a distributed registry to calculate insurance, and the rest - for geolocation, API or artificial intelligence.

The regulator also noted that a "small number" of firms approved for participation in the "sandbox" have a relationship to "cryptoassets". Companies, taking into account the risks, should assess how their solutions are suitable for customers.

Cohort Four has seen a large increase in the number of firms testing wholesale propositions including firms that are aiming to increase the efficiency of the capital-raising process. Alongside these we can see significant use of [DLT], some experimentation with cryptoassets which will help inform our policy work and propositions aimed at helping lower income consumers.
 

Christopher Woolard

Executive Director of the Strategy and Competition Department, FCA

In March this year FCA, after the success of the British "sandbox", launched a similar initiative for the global market. Woolard then stressed that the regulator sees the need for a global sandbox for those companies that "grow at real scale and pace." He noted that 90% of companies from the first group of the sandbox participants entered the real market.

Gemini & Partners to Launch Virtual Commodity Association

Association is created to develop standards for the industry, promote transparency in the market and cooperate with regulators, including the CFTC
20 August 2018   92

Several major exchanges decided to create a new structure designed to eradicate manipulation in the digital assets market, Bloomberg reports.

The Virtual Commodity Association was formed by the founders of the exchange Gemini Cameron and Tyler Winklewoss. According to a statement released on Monday, the group also included Bitstamp, BitFlyer USA and Bittrex. Representatives of four trading platforms will meet in September to consolidate the provisions for the future functioning of the organization.

The Virtual Goods Association will develop standards for the industry, promote transparency in the market and cooperate with regulators, including the Commodity Futures Trading Commission of the United States (CFTC), in order to prevent manipulation of Bitcoin, Ethereum and other currencies.

As the temporary executive director of the organization, Maria Filipakis, who worked in the Financial Services Department of New York, was appointed, where she took part in the creation of a BitLicense.

Earlier, the Winklewoss brothers tried to launch their own ETF, tied to bitcoin, but the US Securities and Exchange Commission denied them twice, as the reasons for its decision, among other things, calling for the absence of adequate measures to prevent cryptocurrency market manipulations.