According to plans published by the U.K. Treasury on Tuesday, digital bonds and equity could be subjected to fewer regulations for around five years.

The government wants to use the new rules that were passed two weeks ago, in order to make the markets more transparent, efficient and resilient.

The Treasury consultation paper stated that digital assets have the potential to transform financial markets. It is crucial that the markets can realize their benefits while maintaining existing regulatory outcomes.

Treasury praised the new powers granted to it under the Financial Services and Markets Act of 2023.

As officials note, the regulatory framework is evolving.

Rishi Sunak said last year that he wanted the U.K. to be a hub for cryptoassets. There have been proposals on crypto promotions , stablecoins and a virtual pound that could be issued by Bank of England. But the industry has complaint the ministers are not acting quickly enough in comparison to rival jurisdictions.

The landmark Regulation on Crypto Assets of the EU is due to come into effect in 2019. A pilot project for Trading DLT Securities has already been implemented.

Treasury wants to hear your views between now and 22 August on its plans for an electronic securities sandbox.

Parikshit Miishra is the editor.