The United Kingdom’s Financial Conduct Authority (FCA) has revealed a roadmap to help asset managers adopt a blockchain technology for fund tokenization.
On a Tuesday announcementThe regulator said the initiative is aimed at “provide companies additional clarity” to adopt tokenization and “drive change and growth in managing.”
“Tokenization has the potential to drive major changes in the management management, with benefits for industry and consumers,” said Simon Walls, executive director of FCA markets. “There are many things that companies can do under our existing policies and more possible with the changes we are proposing today,” he added.
According to the FCA, tokenized products can increase competition, reduce costs and expand investment access, especially in private markets and infrastructure. By digitizing fund operations, asset managers can also lower harmony and data sharing costs.
Related: Tokenization requires guards, not just change
FCA outlined the roadmap for tokenized funds
The plan includes the guide for running tokenized fund registers under existing policies by the UK Blueprint Model, a simplified framework of dealing for processing both traditional and tokenized fund units and a roadmap for the settlement-based blockchain.
The FCA also aims to explore how regulation needs to develop as tokenization becomes wider. “The UK has the opportunity to be a world leader here and we want to provide the managers of the clarity of clarity and confidence they need to deliver,” Walls said.
Last month, Coinbase asked users Support a public petition Calling the UK to come up with a pro-modern approach for blockchain and stablecoins. The petition called for a framework including stablecoin and tokenization regulation, blockchain adoption and the appointment of a “czar” blockchain.
Related: Bny eyes blockchain for real-time tokenized payment
The UK is faced with criticism of crypto policy
The UK’s approach to crypto regulation has gained criticism from industrial stakeholders. In June, analysts from the official Monetary and Financial Institutions Forum (OMFIF), an independent tank of thinking, Warns that Britain has been quizing its early lead Shared Ledger Finance.
In July, also the Coinbase released a satirical video Titled “All is well,” aimed at the British financial system. Footage uses lyrics and music that boast about the country’s strong finances while depicting inflation scenes, poverty and financial struggle.
Industry pressure appears to be paid. Last week, the FCA Raised its 2019 ban on crypto The records exchanged by the exchange (ETN) for retail investors, which allow trading in UK -based exchanges.
Moreover, the Bank of England has already been reported easing suggested limitations In the handling of corporate stablecoin, considering exceptions for companies that require larger FIAT reserves supported.
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