I’m really proud to announce that we’ve been selected to be part of the UK’s FCA Sandbox (Cohort 4). This regulatory sandbox allows cutting-edge businesses to perform limited tests of innovative products, services, business models and delivery mechanisms in the real market, with real consumers — such as you.
We’ve always believed strongly in working closely with the regulators — today’s news shows how we intend to do that.
Why is this important?
Traditionally, emerging technologies such as blockchain are met with suspicion and mistrust. And it’s no wonder why — within the blockchain space there have been endless disastrous events; hacks of exchanges and wallet services, as well as outright scams, all resulting in people losing their money. It has to stop. This all is detrimental to the fundamentally unbiased nature of a new technology and taints it in the eyes of the wider world.
At TokenCard we’re addressing these industry issues in several ways — firstly through the product itself, secondly by working very closely with regulators. The FCA Sandbox is part of this process.
We believe that complying with applicable regulation is the only way to move the industry forward as it is at that point that traditional players will consider working with what are currently viewed as “edge technologies.” We believe strongly in appropriate government regulation and oversight to bring the nascent blockchain industry to a state where customers and partners are comfortable and trusting of companies that operate within it.
The Sandbox will provide an environment in which we can deliver TokenCard to users whilst simultaneously providing the FCA with an insight into our processes and policies. The goal for us is to demonstrate we can uphold the necessary high standard of customer protection and general compliance whilst providing the world with cutting-edge services. Through this setup, the FCA can witness and ultimately advise us on our operations.
What does this mean for you?
The Sandbox test lasts for 6 months. As part of the test, we will explore the regulatory implications of the business model by releasing a limited number of cards for Beta testing as we roll out TokenWallet.
Users who are selected for beta testing the TokenCard will download the Token app, deploy a TokenWallet, apply for and have a TokenCard card issued. Upon successful onboarding and operations with these first users, we will open this up to additional users. The FCA has restricted the number of cards that we can issue in tranches — we’ll have more details on the process which we’ll share with you in an upcoming newsletter.
There’s no change to the schedule we already shared for TokenWallet in June’s newsletter.
We want to thank the FCA for this amazing opportunity — particularly the individuals we’ve been working with to make this happen. And thanks most of all to the community — we couldn’t do this without you.
Mel Gelderman & the TokenTeam
You can find out more about Cohort 4 and the FCA Sandbox below:
