The sandbox is a first step towards a more flexible regulatory approach as Taiwan attempts to compete in a global race to attract fintech talent and capital.

The News Lens
Date: 2018/01/08
By: David Green

If the initiative is to be successful, it will demand lightness of touch and depth of engagement from regulators.

Taiwan has moved one shuffling step closer to being a financial technology (fintech) hub in Asia by creating a regulatory framework for the most innovative companies in the sector to experiment.

Under the Financial Technology Innovation Experimentation Act passed Dec. 29 in the Legislative Yuan, Taiwan will host a regulatory “sandbox” for companies to experiment with new business models that currently do not have a legal framework.

The crux of the sandbox concept is that fintech innovation is moving too fast for legal systems to keep up, so companies require an environment free from the threat of regulatory or legal punishment to maximize their potential. The idea is that regulators will periodically review developments in the sandbox and adjust regulations in order to facilitate innovations that entail the most benefit for business and consumers.
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