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UK to exclude unbacked cryptos from new Digital Securities Sandbox

A visual representation of the digital Cryptocurrency, Bitcoin, which has been cut in hal
Photo: Getty Images

The DDS legal framework will not include derivatives and unbacked cryptocurrencies such as bitcoin.

The HM Treasury has opened consultation on the first financial market infrastructure sandbox – called the ‘Digital Securities Sandbox’ (DSS) – where digital securities will be tested and adopted across financial markets. However, the government is expected to leave out unbacked cryptoassets, which include exchange tokens and derivates.

“The regulatory landscape, both