GSTechnologies Ltd (LON:GST), the fintech and information technology solutions company, has announced that the Company has appointed Pinsent Masons LLP as its legal advisor to assist with the Company’s stablecoin application for admission to the UK Financial Conduct Authority Regulatory Sandbox. Founded on the precept that innovation and technology can benefit consumers and the financial services industry, the FCA Regulatory Sandbox provides a production environment for firms to test innovative propositions in the market with real consumers.
To assist with the FCA Regulatory Sandbox application process, the Company has appointed Pinsent Masons LLP as their legal adviser. The application is intended to be submitted by GST’s UK incorporated blockchain focussed business unit, GS Fintech Ltd. The Pinsent Masons team will advise GS Fintech on its application to the FCA, including helping in refining GS Fintech’s stablecoin business plan. They will also support GS Fintech’s activities in ensuring the proposed technical and operational procedures are compliant with all electronic money and relevant payments regulations in the UK.
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The FCA Regulatory Sandbox application is a key pillar of the stablecoin activities that the Group intends to carry out in strategic jurisdictions, including the UK, as outlined in the Company’s announcement on 30 June 2022. The Company has undertaken significant research to analyse the impact of global stablecoins and the regulatory requirements in each leading jurisdiction. Taking appropriate advice, the Company has identified the UK Government’s openness to the industry, the UK regulatory authorities’ commitment to cooperating with industry partners, and the UK’s forward-looking regulatory approach to attracting stablecoin service providers as significant reasons informing the Company’s decision to operate and grow in the UK.
Utilising the FCA Regulatory Sandbox is designed is to encourage more participants to experiment with the Company’s fiat-linked (full-reserve backed) stablecoins and conduct stress tests in the stablecoin-based payment system, in a similar manner to how it performs in the banking world. Ultimately, the Company’s goal is to be the first publicly quoted company to obtain an electronic money institution licence from the FCA to issue stablecoins and provide trusted stablecoin-based payments services to the UK market and beyond.
Further announcements will be made in due course, as appropriate.
Tone Goh, Chairman of GSTechnologies, commented: “Since the launch of GS Money stablecoins in late November of 2021, our testing has been largely restricted to companies under GST’s direct control, applying to the Regulatory Sandbox changes that.
“We believe the UK market is in need of a trusted UK-based provider to offer regulated electronic money and payment activities specifically related to stablecoins. I believe GST has the technology and operational readiness to be a leader in this business.”