The Bank of England (BoE) and the Financial Conduct Authority (FCA) are set to adopt a proactive and flexible approach to regulation through the Digital Securities Sandbox (DSS). This marks a significant shift in regulatory culture, according to BoE Executive Director Sashi Mills. The DSS will operate under a flexible rulebook, adapting based on observations from DSS activity. This will allow the use of developing technologies, including digital ledger technology (DLT), that might not otherwise be permitted. Firms operating within the DSS will face limits on the value of securities they can handle, adjusted based on their ability to meet regulatory standards.