Hong Kong’s Securities and Futures Commission (SFC) has launched a RegTech sandbox to enabled qualified firms to test their regulated activities.
The SFC said the Regulatory Sandbox will provide a confined regulatory environment for qualified firms to conduct regulated activities utilising financial technologies (Fintech).
It will help firms identify and address any ‘risks or concerns’ associated with their regulated activities before launching their services to the wider public in Hong Kong.
CEO Ashley Alder said, “The SFC recognises that firms utilising innovative technologies may broaden investor choice and benefit the Hong Kong financial services industry,”
“For the sake of market integrity and better investor protection, the sandbox provides a confined regulatory environment for qualified firms to demonstrate the reliability of their Fintech solutions as well as their internal control systems at the initial stage.”
To be qualified to enter the sandbox, a company must utilise innovative technologies’ and be able to demonstrate a ‘genuine and serious commitment to carry on regulated activities through the use of Fintech’ according to statement from SFC.
The company should also benefit the Hong Kong financial services industry, whilst also looking to increase the range and quality of products and services for investors.
Recent deals in Hong Kong’s FinTech space include TNG Wallet reportedly closing its Series A financing round on $115m. While Alibaba Entrepreneurs Fund made its FinTech investment in backing Hong Kong-based invoice financing platform Qupital.
Recent data from FinTech Global found that Hong Kong’s FinTech funding landscape is dominated by a small number of larger deals. In the first half of 2017, 87% of the total investment in Hong Kong FinTech companies went to one large deal.
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