Britain makes crypto technology a priority for streamlining markets

Britain will begin live testing of crypto blockchain tech for traditional market activities next year as part of a drive to become a global "crypto hub", the finance ministry said.

Gwyneth Nurse, the ministry's director general for financial services, said the use of distributed ledger technology (DLT)...

which underpins cryptoassets, is a key priority for making financial market infrastructure more innovative and efficient for users.

Britain will launch a financial market infrastructure "sandbox" next year for testing DLT projects under control of regulators...

A model UK regulators pioneered for nurturing fintech firms. A sandbox is a testing environment for projects involving real customers.

In financial markets, the trading of stocks, bonds and other assets traditionally involves three distinct activities of trading, clearing and settlement.

Using DLT could change this and allow financial assets such as bonds or stocks to be issued in hours rather than days or weeks.

"The government may also want to test how trading and settlement might be brought together," Nurse told the annual IDX derivatives conference in London.

"A sandbox will allow to test new regulatory best practices and make permanent changes to ensure market users benefit."