Britain adopts blockchain technology and allows the launch of coded boxes

  

Britain

adopts blockchain technology

and allows the launch of coded boxes

Funds licensed by the British Financial Conduct Authority (FCA)

are now eligible to start developing coded funds.

These funds aim to use blockchain technology to register asset ownership by brokering encrypted codes, with the aim of enhancing asset management.

According to Reuters news agency report.

Coding, also known as retail

is a new step in

the development of the digital fund management field.

By fragmenting assets into smaller units using blockchain technology

more cost-efficient trading and enhanced transparency can be achieved.

In addition

coding opens the door for investors to diversify

their portfolios by providing a wide range of assets.

Under the new directives

Funds licensed

by the UK Financial Conduct Authority are now allowed to

start developing coded funds.

However

these funds are required to focus on core assets and adhere to

existing valuation and reconciliation protocols

In this context

Michelle Skremgor

Chief Executive Officer of

Legal and Public Investment Management and Chair of

a major working group on this initiative

expressed optimism for the future of the symbolic funds.

The technology carried enormous potential

and could redefine

the asset management industry by providing greater liquidity

improving risk management and creating

more customized investment portfolios.

The move comes as part of Britain's strategic efforts to boost liquidity

and competitiveness in the asset management sector, especially in

the post-Brexit period.

At the end of October

The UK government announced its plan to enact legislation to

regulate the country's cryptocurrency sector, in response to

improving bitcoin performance after the collapse of the "FTX" market.

The proposed plan requires companies

operating in the cryptocurrency industry to obtain a licence

from the Financial Supervisory Authority (FCA)

before providing their services to consumers.

According to the forthcoming regulations

It will address a range of activities related to encrypted assets, including

Trade

and save cryptocurrencies and invest in them

Exchange Services

Services based on distributed ledger technology (DLT)

which is the basis for cryptocurrencies.

In early October

Helen Boyd, head of capital markets at the FCA

unveiled His Majesty's Treasury plans to launch

a digital financial asset testing fund at the end of the first quarter of 2024.

The move aims to support technology companies in their early stages of

developing their products in the field of digital financial assets.

This fund aims to provide

an experimental environment for companies to test

and improve their products and explore the benefits of

new technologies in the field of cryptocurrency assets.