The UK Launches New Regulations for its Digital Securities Sandbox

On Monday, the UK announced new regulations to establish a Digital Securities Sandbox (DSS) for tokenized securities and provide guidance for financial regulators.

These regulations, part of the Financial Services and Markets Act 2023 (FSMA), will come into effect on January 8, 2024.

They set boundaries for activities in the sandbox and determine the qualifications for participation.

The DSS will serve as a testing ground for innovative solutions such as distributed ledger technology and tokenization of securities, involving both regulators and companies.