The Financial Conduct Authority (FCA) of the United Kingdom (UK) intends to give companies access to a digital sandbox, or testing environment, so they may examine how their products work at an early stage of development.The sandbox, which began testing in 2020, is open to data suppliers as well and will give businesses access to data sets, application program interfaces (API), and data security protection.It was used to assess sustainability performance, including eco-friendly decentralized ledgers, during one of the two trial phases.
Developers can test and assess their products in a secure environment called a sandbox knowing that any unforeseen side effects will be isolated from a live environment.According to a person familiar with the initiative, the FCA’s service can be set up to enable a variety of distributed ledger and digital asset use cases, such as creating network interoperability.
In a speech last year, the former Economic Secretary John Glen outlined plans for the sandbox and stated that he wanted the nation to promote crypto innovation. His successor, Andrew Griffith, repeated this position.The sandbox was previously only accessible during pilots and TechSprints, which brought together individuals from the financial industry to address difficulties facing the sector.