Blockchain, AI prevail in FCA sandbox second cohort

Maria Nikolova

Accepted propositions from companies in the second cohort range from DLT-based payment services to AI software to observe client behaviour and help determine client preferences before financial advice is provided.

The UK Financial Conduct Authority (FCA) has just provided an update on its regulatory sandbox that allows firms to test innovative products and services in a live environment while making sure that consumers are protected in the right manner.

The FCA said it had received 77 submissions for the second phase of the regulatory sandbox, more than the 69 applications received for cohort one. The current cohort consists of 24 firms that are ready to start testing soon. Tests will be run on a short-term and small-scale basis.

Accepted propositions from firms in the second cohort cover a variety of ideas including distributed ledger technology based payment services and artificial intelligence software to observe client behaviour and to help determine client preferences before financial advice is provided.

BlockEx, for instance, plan to test a bond origination, private placement and lifecycle management platform based on distributed ledger technology. nViso will test an online platform providing advisors and clients behavioural assessment profiles generated by artificial intelligence and facial recognition, whereas ZipZap develops a cross-border money remittance platform that chooses the most efficient means for a payment to reach its destination, including via digital currencies.

The FCA is now accepting applications from firms that wish to be part of its third sandbox phase. Firms have until July 31, 2017 to submit their applications. The eligibility criteria, application form and detailed instructions are available on the Regulatory Sandbox pages. The FCA expects all accepted firms to be ready to commence testing from November 2017.

Regarding cohort one, the FCA says that that 18 firms had testing plans approved in October 2016. The six-month testing window has now closed and firms are filing their final reports, which will be reviewed before the firms transition out of the sandbox. The regulator says that most of the tests have developed as planned.

In the spring of 2016, when the FCA sandbox was launched, FinanceFeeds stressed the vital role of such an approach towards regulation. In case this experiment is successful, it would mark a shift towards a new collaboration-focused regulation of fintech firms.

Read this next

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Bybit expands into Europe amid regulatory scrutiny

Dubai-based cryptocurrency exchange Bybit is expanding its operations in Europe after encountering regulatory challenges in Hong Kong.

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

<