United kingdom is being serious with the digital crimes and the digital currency. They are trying to keep up with the times. Why? The reason being crypto is slowly being penetrated and being used by large number of people in UK and Europe.
Last month UK tried to push for the crime bill that was covering the freezing of the crypto funds that are transfered under the crime. And they are going to be passing such law by the end of this year. And that's some strong progress from them in the digital crime narrative.
This month British Treasury announced that they are going to be releasing the sandbox specific to the digital securities. This was said by the spokes person of the Financial Conduct Authority (FCA).
Let's breakdown the news here to see what sandbox could do for UK.
Image Credit: Glassdoor
Digital security Sandbox and Regulatory Sandbox
Every nation maintains a regulatory sandbox. They tend to test some of the rules on the systme that way. You may find that UK is following more or less same approach on the digital side too. You may find that they are adding the digital assets and the coins into this too.
Digital security sandbox would be taking into consideration variety of things that would be included into the regulation. All the innovative digital products that make use of the CBDC and the crypto would be tested around the Digital security sandbox. You'd find this useful when they launched it.
FCA crypto advertising Regulation
Every advertiser that make use of the proper platforms for showing the crypto ads, now have to undergo through the regulation and reforms of the UK. So it's like say when you are showing the ads onto the facebook and the google. You have to take permission of the FCA in order to display the ads.
Now you are not limited to the UK only. You can be in any nation and you would be asked to follow the standards and the authenticity in order to go along with the sandbox. And this means your sandbox regulation is going to be followed before it can serve the customers in UK. So it applies to all the advertisers outside the nation too.
What this means for the Consumers in UK?
I think more rules in favor of the consumers means that scammers would have to keep things decentralized in order to cheat. Because more centralization means more govt sponsored scammers can surviveand others would easily get caught.
Also the rules of the FCA and the crime bill will make sure to bring more transparency. And there is a chance of the recovery of the funds. In short this would be bringing more control for the consumers in the upcoming times. This is what we are about to experience in the new year 2024.
We are not in 2020 anymore. A lot of new rules, regulations and the centralized control is coming up in UK. And that means we would be seeing more stablecoins and the CBDCs are about to come. Let's wait for the digital security sandbox to show its mainstream use case in near future.