UK Financial Conduct Authority Shares Public Feedback on DLT
British regulator the Financial Conduct Authority (FCA) has released the results of its public opinion survey on its discussion paper on distributed ledger technology (DLT) or Blockchain and its future development potential for the markets it regulates.
The financial regulator has received a total of 47 feedback from both local and international trade associations, regulated companies, law firms, and consultants.
Based on the released report, the respondents favored the technology-neutral policy that was adopted by the FCA in advancing regulation, but they also supported Sandbox projects that are meant to test out DLT innovations before deployment for public use.
The DLT solutions are also believed to provide and deliver on regulatory requirements significantly beter than the existing systems at lower costs for both the regulators and the companies that are operating in the DLT market.
The respondents, however, have voiced out concerns over the computability of the FCA’s present regulatory regime and permissionless networks. The FCA seems to have adopted a policy to allow all forms of DLT deployment, whether the networks are permissoned or permissionless, as long as the possible operational risks are immediately identified and resolved by the service providers.
In his press statement on the public opinion results, the agency’s Director of Strategy and Competition, Christopher Woolard, said that they will continue working with agencies and companies to maintain a coordinated strategy on the adoption of DLT in the financial services industry.
“The original paper opened a discussion about DLT and the volume and breadth of responses we received from the industry demonstrate the significance of this issue. DLT has the potential to transform practices across a number of markets, sharpening competition and improving risk management.
The statement continues:
At the same time, we have to be alive to the risks of certain applications of it. We will continue to work with a range of agencies and firms to ensure a coordinated approach to the use of DLT in financial services.”