The regulatory sandbox was set up in Taiwan two years ago. The Financial Supervisory Committee (FSC) announced that since then, there have been 13 applications with seven of them permitted to start their business under the regulatory sandbox framework.
Two of the seven permitted applications have accomplished their set targets, and therefore, have already “graduated” from the regulatory sandbox. These applications are the KGI Bank’s implementation of an online personal unsecured loan service based on cell phone bill payment records; and Fubon Bank’s interbank transfer and payment system based on blockchain technology. The FSC is considering modifying the regulations based on the result of KGI Bank’s application. Once the regulations have been amended, the business model for KGI Bank’s online personal unsecured loan service may be adopted by other banks.
The FSC has stated that Fubon Bank will probably begin a new sandbox application extending its blockchain technology for international bank transfers. It’s expected that the current regulations for inter-bank or international transfers will not be amended before the filing of the second round of Fubon Bank’s regulatory sandbox application.
The trial operation of innovative financial services is becoming more popular in the financial sector. Those with bank licenses, or those already cooperating with banks, are finding it easier to test out new ventures, which are not in conflict with current regulations, through this channel.
These developments are good news for companies that are looking to take part in Taiwan’s push for innovation and growth. If you or your company would like to know more about the regulatory sandbox or the trial operation for financial sector businesses, you can take a look at our earlier overview here.
If you have specific questions about whether your business qualifies for the sandbox and how to apply, please contact Christine Chen at email@example.com.Written June 22, 2020 By Christine Chen, Ta Yen Wu.