Consultation on the Digital Securities Sandbox
Read the full outcome
Detail of outcome
ʹapp government has confirmed its final approach to implementing the Digital Securities Sandbox, which will facilitate the use of digital assets in financial markets. This document summarises the feedback on the consultation, which was published on 10 July 2023 and closed 22 August 2023, and sets out the government’s response.
ʹapp statutory instrument setting up the Digital Securities Sandbox was laid on 18 December 2023. ʹapp legislation can be found here:
Original consultation
Consultation description
This consultation sets out HM Treasury’s proposed approach to delivering a Digital Securities Sandbox (DSS), which will be the first financial market infrastructure sandbox delivered under the powers granted as part of the Financial Services and Markets Act 2023. ʹapp DSS will facilitate the testing and adoption of digital securities across financial markets. Through the DSS, industry will be able to set up financial market infrastructures that utilise digital asset technology, which can perform a number of activities in relation to digital securities under a temporarily modified legislative and regulatory framework.
ʹapp consultation invites feedback from industry on the approach to the DSS, and seeks feedback on some further policy and legal issues.
It also invites respondents to formally express their interest in using the DSS, on the basis that conversations with potential applicants should begin as early as possible.
Responses to this consultation should be sent to [email protected] by 22 August.
Note that responses will by default be shared with the Bank of England and the Financial Conduct Authority. Responses should clearly indicate where they do not wish for responses to be shared, or if they would like them anonymised.