A Malaysian Bank has distributed particulars regarding the Regulatory Sandbox Framework for all Financial Technology that will be applicable in Malaysia indefinitely following a one month consultation for the proposals that were released a few months earlier this year.
The regulatory sandbox will enable the experimentation of a Fintech solution in a live environment, subject to the relevant regulatory requirements & safeguards.
Over 60 comments and suggestions were received from various Shareholders including Financial Institutions, Fintech companies, establishments and other corporations. Following the suggestions received during the consultation procedures, Banks have vowed to expand the eligibility criteria in order to increase the focus of innovations that the sandbox intends to sustain and develop.
All innovations should have strong potential to:
Enhance the efficiency & effectiveness of Malaysian financial institutions’ risk management.
Improve the convenience, quality, efficacy & security of financial services in Malaysia.
Address any gaps for financing or investments in the Malaysian economy.