The U.K. has introduced a new regulation, effective from January 8, allowing its financial regulators, the Financial Conduct Authority (FCA), and the Bank of England to operate a Digital Securities Sandbox (DSS). The sandbox will enable companies to test tokenized securities and distributed ledger technology under regulatory supervision. This move reflects the growing interest in the tokenization of real assets globally, with U.K. regulators aiming to create a framework for their regulation. The Digital Securities Sandbox will provide a controlled environment for testing new solutions and products, allowing businesses to experiment with digitizing or tokenizing traditional securities while regulators assess and adapt rules to accommodate evolving technologies. The regulation is part of the recently passed Financial Services and Markets Act 2023, demonstrating the U.K.’s proactive approach to shaping regulations in the crypto sector. (Source: Coindesk)