JERUSALEM—An Israeli inter-ministerial team is recommending the establishment of a regulatory sandbox for fintech startups, intended to provide early stage
companies with regulatory mentoring and time-limited exemptions.
In August 2017, the Israeli Ministry of Finance published a call for information with the intention of lifting local regulatory obstacles. At the time, the ministry cited several similar programs offered or tested in the U.K., U.S., Russia, Australia, and Canada. A similar program was considered for companies interested in initial coin offerings in 2018, Calcalis Tech.com noted.
In January 2018, a team was compiled of representatives from the finance ministry, the Ministry of Justice, the Israel Securities Authority, the Israel Tax Authority, and other relevant authorities, the news outlet explained.
Recently, the finance ministry announced the team's recommendations. Those include setting up a one-stop address for companies whose activity or technology is outside the existing regulatory scope, with the intention of promoting the widespread adoption of innovative fintech technologies in Israel, Calcalis Tech.com said.