Legal Guidance for Entering the Sandbox and Taking Advantage of Cross‐Border Cooperation Agreements
By James Burnie · 2019
Sandboxes encourage positive regulatory interaction and help understanding. In this respect, this chapter has tried to give some practical guidance for those considering sandboxes, as well as briefly looking at the wider picture, using cooperation agreements by way of example. Although sandboxes are important, one should see their potential value for a business in light of their purpose. Sandboxes are not all the same, but they tend to share three core characteristics: they allow product testing within a controlled environment; they provide a contact point between the industry and the regulator; and they allow regulators to 'adapt the rules'. Although competition between regulators may seem odd, regulators are providers of a regulatory solution. Regulatory innovation is certainly a good thing because it encourages safe practices, but also recognizes that FinTech is different and a different approach is required. This is very positive.