The Taiwanese government has approved a draft law that will establish a fintech sandbox, allowing firms to test services free from cumbersome legal restrictions for up to 18 months.
The bill, which aims to promote innovation in Taiwan’s financial sector, is awaiting approval by the legislature.
Among the companies eligible for the fintech sandbox are digital insurers, peer-to-peer lenders, blockchain technology providers, big data analytics firms, and payment systems, said Financial Supervisory Commission vice chairman Cheng Cheng-mount in a report by
Taipei Times.
Firms that participate in the program must aim to improve the efficiency of financial services, lower operating cost or enhance consumer rights, Cheng said.
The results of the experiments will be reviewed by authorities, which will provide assistance to develop business opportunities for promising innovations, or even revise regulations to accommodate new applications of financial technology. However, the sandbox will not exclude firms from money-laundering and consumer protection laws.
“Innovative financial technologies could be a major driver of the financial industry, as well as other sectors, and Taiwan cannot afford to fall behind other countries in the development of financial technology, or it would risk its competitiveness and overall industrial development,” Taiwanese Premier Lin Chuan told the assembly. He asked legislators and other officials to cooperate for the quick passage of the act.
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