Regulators plan to create a “global sandbox” for the fintech sector

A number of financial regulators from around the world are forming a new alliance to promote the development of blockchain technology and distributed ledger technology (DLT).

The UK's Financial Conduct Authority (FCA) and 11 other regulators from Hong Kong, the US, Australia and Abu Dhabi have announced the creation of a global network to promote financial innovation, the Global Financial Innovation Network (GFIN).

GFIN will be used as a network for regulators to discuss fintech policy to develop a "global sandbox" that will provide companies with "an environment to test cross-border solutions."

The FCA also said a new alliance is being formed in a response to the idea of creating a “world sandbox” discussed in February. Of the 50 comments the FCA received on this issue, one major concern emerged - how regulators around the world could work together to pilot a cross-border payment system based on distributed ledger technology, and how to regulate token offerings that often cross country borders.

Notably, several GFIN members, including the Monetary Authority of Singapore, the Hong Kong Monetary Authority and the Abu Dhabi Global Market Regulators, are already working on cross-border payment corridors in DLT.

A group of regulators jointly published a consultation document inviting regulators, financial and technology firms, and other interested companies to provide comments on the GFIN initiative by October 14, 2018.

Last month, the FCA also accepted 11 blockchain startups into its sandbox to test proposals for crypto assets. The purpose of the study is to determine whether consumer benefits can be achieved in a controlled environment and to identify the risks associated with such control.

According to https://www.coindesk.com