Establishment of the Regulatory Sandbox
The Regulatory Sandbox Framework was published in October 2016 to enable the experimentation of fintech solutions in a live environment, subject to appropriate safeguards and regulatory requirements.
Since then, the Regulatory Sandbox has played an important role in advancing digital innovation for both incumbents and start-ups. It has enabled the testing of various new technologies (e.g. electronic Know-Your-Customer) and business models (e.g. digital insurance, peer-to-peer family takaful, buy-now-pay-later, digital remittance) in the market which has helped inform BNM¡¯s developmental policy considerations and contributed to several policy enhancements. The Regulatory Sandbox also strengthened collaborative efforts between stakeholders in the fintech ecosystem by acting as a platform for active and open engagements with BNM.
Building on these experiences, BNM published and operationalised an enhanced Regulatory Sandbox Framework in February 2024. The enhancements introduced are timely and necessary to accommodate growing innovation capabilities in the financial sector. They also ensure that the Sandbox process is better aligned with existing innovation cycles. With this, the Regulatory Sandbox will continue to support industry players in bringing financial innovations safely to market as well as contribute to more robust policy development and calibration at BNM.
For further information, please refer to the press release for the Sandbox Framework
