The Monetary Authority of Singapore (the Central Bank) has set up a regulatory sandbox for fintech startups to play in without risking customers’ data (and money). This is a live environment where financial institutions and fintech startups can test new products and services. Part of the aim of the sandbox is to provide a bridge between disruptive fintech solutions and the regulatory landscape.
The ministry notes that cautious entrepreneurs or financial institutions are unlikely to go ahead with ideas of new products if they feel they’re not covered by existing regulations. Hence the Singapore government has created an experimentation space, where existing legal requirements are relaxed for a specific duration of time. It helps startups see if their product resonates with potential users, safeguards against failure, and ensures that the overall financial system remains healthy.
Which other areas of societal transformation do you think need a sandbox?