Malaysia’s central bank is continuing its efforts to advance financial technology in the country by opening its fintech regulatory sandbox, with four firms initially joining.
The Bank Negara Malaysia (BNM) has issued the licenses for the following firms: GoBear and GetCover, which are financial advisers and insurance aggregators, along with WorldRemit and MoneyMatch, which provide remittance services. MoneyMatch is also authorized to provide foreign exchange services.
The sandbox is open to both Malaysian-owned firms such as GetCover and MoneyMatch, and foreign-owned companies, represented by Dutch-owned GoBear and UK-based WorldRemit.
Fintech is a heavily regulated sector, as the government must see to it that the consumer’s money is well-protected. Having regulatory sandbox allows firms to operate with less regulatory constraints, fostering innovation in the financial industry. The firms will be allowed to commercially launch their services as long as these adhere to a minimum list of requirements set by the BNM.
Regulatory standards differ from country-to-country, and there have been several initiatives to standardise regulations across the region.
Earlier this year, BNM established the Financial Technology Enabler Group (FTEG), which oversees the entry of technological innovations into the country's financial services. It will guide the search for developing solutions that will augment the quality, efficiency, and accessibility of financial services in Malaysia.
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