Qualified fintech firms can now start to play in the Hong Kong regulatory sandbox.
The Securities and Futures Commission (SFC) in Hong Kong announced the move to provide a confined regulatory environment for qualified firms to conduct regulated activities utilising financial technologies.
To qualify for entry a firm must be either a licensed corporation or a start-up firm which intends to carry on a regulated activity. It must be fit and proper, utilise innovative technologies and be able to show a genuine and serious commitment to carry on regulated activities through the use of fintech.
But Play Nice
The SFC's sandbox aims to enable qualified firms, through close dialogue with and supervision by the SFC, to identify and address any risks or concerns associated with their regulated activities before their services can be provided to the wider public in Hong Kong.
The circular emphasises that the sandbox should not be viewed as a means to circumvent legal and regulatory requirements. If the SFC considers that a firm operating in the sandbox is not fit and proper to remain licensed, its licence may be revoked.
The move by the Hong Kong regulator follows similar actions from other regional financial enforcers. Singapore, Malaysia and Australia have already established and opened their own versions.
