The UK has introduced new regulations that will give the nation's financial watchdogs rules for supervising a sandbox for tokenized securities, according to an official publication on Monday.

The regulations will be for the UK's Digital Securities Sandbox, DSS, and they come into force on Jan. 8, 2024. They are part of the UK government's Financial Services and Markets Act 2023, or FSMA.

Regulations for supervising the Digital Securities Sandbox

The new rules set the overall limitations on what can be carried out within the sandbox and which participants are eligible for involvement. The sandbox will let regulators and companies test solutions, including distributed ledger technology and the tokenization of securities.

The UK Treasury stated that oversight of the new regulations will …