In April 2017 we published Discussion Paper DP17/3 to start a dialogue on the potential for future development of distributed ledger technology (DLT) in the markets we regulate. We are now publishing a Feedback Statement that summarises the feedback received and sets out our response.
We are providing an overview on the feedback received in response to Discussion Paper DP17/3. The feedback suggested that our current rules are flexible enough to accommodate applications of various technologies, including the use of DLT by regulated firms. We further set out our response to specific issues discussed by respondents, including operational risk, digital currencies and initial coin offerings, regulatory reporting, financial crime and the general data protection regulation.
Encouraged by the positive feedback received, we will maintain a proactive and supportive approach to technological innovation.
This Feedback Statement is aimed at both users and providers of DLT solutions in the sectors we supervise.
We will continue to monitor DLT-related market developments and keep our rules and guidance under review in the light of those developments.
Following our consumer warning on initial coin offerings, we will conduct a deeper examination of the market to determine whether or not there is a need for further regulatory action.
We will also continue our direct engagement with market participants, in particular via our Innovate initiative, and work closely with other national and international stakeholders.