The Monetary Authority of Singapore (MAS) has released a consultation paper proposing a regulatory sandbox that will allow financial and non-financial institutions to experiment with fintech solutions.
The sandbox will allow firms to experiment with fintech solutions in an environment of relaxed regulatory requirements that an applicant would usually be subject to and appropriate safeguards, the regulator said.
MAS proposed that applications for solutions to be tested in the sandbox would be evaluated on multiple criteria including the solution’s innovativeness, and benefits of the solution to consumers and/or the industry.
Application would also be assessed on the criteria whether the applicant has the intention and ability to implement the solution in Singapore on a broader scale, the regulator said.
The consultation would start from 6 June and end on 8 July 2016.
MAS deputy managing director Jacqueline Loh said: "MAS aims to provide a responsive and forward-looking regulatory approach that will enable promising FinTech innovations to develop and flourish. The sandbox will help reduce regulatory friction and provide a safer environment for FinTech experiments. We believe this will give innovations a better chance to take root."