The Financial Conduct Authority (FCA), responsible for conduct and relevant prudential regulation of financial services firms and financial markets in the U.K., has announced the details of the firms selected to be part of cohort 4 of its regulatory sandbox, according to an FCA post. Of the 29 firms selected, about 40 percent of them are blockchain focused.
The sandbox’s cohort 4 is a regulatory environment where firms can test innovative products, services or business models in a controlled environment with real customers. Businesses can test out their services with the aim of reducing costs of time-to-market while providing support in identifying “appropriate consumer protection safeguards” to be built into the products. This particular regulatory sandbox is a brainchild of Project Innovate, an initiative the FCA created in 2014 "to promote competition in the interest of consumers."