What is a Regulatory Sandbox?
A Regulatory Sandbox constitutes a regulatory regime that provides financial technology firms (FinTechs) a controlled environment to test their innovative financial propositions for a specified period and while formally engaging with the Regulator.
The Regulatory Sandbox does not constitute an unregulated environment and should not be perceived as a testing space where laws and regulations are relaxed. Its scope is to enable market participants and regulators to engage in a conductive dialogue that positively influences regulatory reforms and facilitates the appropriate balancing between financial innovation and risk mitigation.
Introduction to the BoG Regulatory Sandbox: General overview and objectives
In order to facilitate innovation in Greece and construct a regulatory environment that encourages providers to embrace emerging technologies, in accordance with their regulatory obligations and without compromising the stability of the financial system, the Bank of Greece (the “BoG”) has established a Regulatory Sandbox. As such, the BoG Regulatory Sandbox constitutes a ‘mechanism’ that enables participants to carry out small scale testing of innovations, in a controlled regulatory environment, within specified parameters and timeframes whilst formally engaging and directly cooperating with the Bank of Greece. The Executive Committee Act 189/1/14.05.2021 defines the terms and conditions for the establishment and operation of the Regulatory Sandbox.
The primary objectives of the BoG Regulatory Sandbox are to: