LONDON—More than 20 regulators from countries that include the United Kingdom, Canada, the U.S. and Australia have opened applications for a global fintech “sandbox” following a trial in 2019.
The so-called sandboxes seek to allow fintechs and other innovators to test new products and services in a controlled environment under regulatory supervision.
The regulators have come together alongside related organizations as part of the Global Financial Innovation Network (GFIN). The group, which now has more than 60 members, launched in January 2019 with the aim of boosting international co-operation around innovation, Global Government Forum noted.
The U.K.’s Financial Conduct Authority (FCA), which currently chairs GFIN, recently announced applications are open for the first cohort of businesses to use the sandbox. This will enable firms to test “innovative financial products, services, business models or regulatory technology across more than one country or jurisdiction, according to the FCA.
Emerging Innovations
The FCA, which launched a U.K. regulatory sandbox in 2016, proposed a global sandbox almost three years ago. An August 2018 consultation highlighted that major emerging innovation trends within financial services – such as big data, artificial intelligence and blockchain-based solutions – are increasingly global, rather than domestic, in nature, Global Government Forum said.