The UK’s Financial Conduct Authority (FCA) will possibly approve blockchain businesses within the region. This will give UK-based distributed ledger businesses an edge when it comes to grasping a broader reach towards consumers.
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The FCA Is Researching Blockchain Startups for Economic Growth
According to the Financial Times (FT), the UK’s FCA is considering the approval of a “small but significant number of firms” that use blockchain technology within the fintech industry. The FCA is researching and monitoring projects involved with the organization’s “Project Innovate” program.
The group assesses companies through a regulatory sandbox and so far has evaluated 177 startups, with 40 of them being approved for further consideration.
Blockchain technology startups are just beginning to grow in number, but according to FT, some regulators are concerned with fraudulent activity and volatility of certain projects.
Chris Woolard, the FCA’s director of strategy and competition, tells FT:
We do think blockchain has got some potentially interesting applications and we are talking to firms thinking about how to apply that to financial services and how it could benefit consumers or indeed make the business of compliance easier.— There may be