Regulatory Sandboxes in the UK and Singapore: A Preliminary Survey
Regulating FinTech in Asia: Global Context, Local Perspectives (Mark Fenwick, Steven Van Uytsel and Bi Ying ed., Forthcoming, August 2020)
22 Pages Posted: 14 Sep 2019 Last revised: 14 Feb 2020
Date Written: September 6, 2019
After the UK launched the first regulatory sandbox regime in 2016, the approach was quickly transplanted to numerous other countries as a means of promoting innovation, improving competition and enhancing financial inclusion. However, it remains unclear whether the approach can effectively achieve the relevant policy goals and thus justify the differential regulatory treatment. This paper provides a broad overview of the regulatory sandbox regime and examines its potential benefits and problems. The paper then provides some empirical evidence by analysing the sandboxes awarded in the UK and Singapore between 2016 and 2018 with the aim of identifying what the businesses awarded the sandboxes are doing, the services they provide and their current regulatory status against the backdrop of the financial technology revolution. These cases provide a basis on which to assess the effectiveness of the regulatory sandbox approach in its infancy stage and provide some reflections for regulators.
Keywords: financial technology, fintech, regulatory sandbox, innovation, financial regulation
Suggested Citation: Suggested Citation