New global alliances are coming up through various financial regulators to accelerate the growth of fintech in this new era of blockchain and distributed ledger technology (DLT).
The Global Financial Innovation Network (GFIN) is one of the major initiatives which the U.K. Financial Conduct Authority (FCA) including 11 other associate regulators from jurisdictions such as Hong Kong, the U.S., Australia, and Abu Dhabi declared on Tuesday.
GFIN will predominantly operate as a network of regulators to consider and review policies regarding financial technologies, the statement shows, as well as to develop a “global sandbox” that will offer firms “an environment in which to trial cross-border solutions.”
The FCA through a consultation paper mentions:
“the new alliance follows a consultation effort in February on the idea of an international sandbox.”
The authority is dedicatedly focusing on the fundamental topic out of the 50 responses received during the consultation process on how regulators around the world collaboratively work to pilot cross-border payments constructed on DLT and the issuance of positive measures on the regulation of international ICOs.
The members of GFIN, including the Monetary Authority of Singapore, Hong Kong Monetary Authority, and Abu Dhabi Global Market, have already started working on cross-border payment passages developed with DLT.
The group is actively looking for the suggestion and seeking public feedback on the GFIN initiative by Oct. 14 by jointly publishing a consultation paper.