UK Government Regulators Welcome Blockchain Startups into the Market
The FCA announced that it has accepted 29 blockchain and DLT applicants out of the 69 companies that originally applied. However, the organization has accepted only 11 companies to enter the UK market.
The start-ups are being tested under the watchful eyes of the UK’s FCA - Financial Conduct Authority’s regulatory body which started its role in June, 2016 with the aim of letting businesses try their new innovations in the UK’s market.
The regulator announced that the firms would be testing their proposals at first, and that the regulator was ardent to examine if the companies’ proposals were beneficial to the consumer while keeping a close eye on related risks.
One of these companies will be given the opportunity to build a DLT-platform in partnership with Nivaura, a financial services company based in London, and the London Stock Exchange.
The DLT-platform should promote the dispersion of a type of security token, namely equity tokens based on an open-source platform (Ethereum). This may lead the UK government to recreate the concept of investments.