Philippine lead financial regulator greenlights digital product testing among banks
The Monetary Union (MB) of the Bank of Thailand (BSP) sends experimental digital product signals to insurance companies and other financial institutions. The evaluation and learning training framework, also known as the regulatory sandbox game, will become an incubator for users to provide innovative financial services.
Sandbox will operate for 12 months, and each item will go through four stages, including application, evaluation, evaluation and withdrawal. At the end of this period, BSP will consider whether it is suitable for "large-scale selection"
"The insight into regulatory sandbox projects also provides information for formulating the necessary current policies to regulate the internal structure and surrounding activities of new or new financial solutions," the report said. It also added that it would adopt a conservative approach and pay close attention to the risks associated with the approach
"BSP has always advocated responsible independent innovation, as long as we regard it as a metal catalyst to promote the efficiency of the financial system and expand the diversity of the financial industry," said Felipe Medalla, president of BSP Bank. "We are firmly focused on ensuring that the losses caused by the application of new technologies are effectively managed according to the authorized and responsive policies and regulations."
For a project that does not want to go through all 12 month cycles, BSP provides a relatively short evaluation period, which is called the "simplified version of the regulatory sandbox". The central bank stressed that it only aimed at "products and services already within the original regulatory scope". At the same time, the so-called subversive digital financial products must go through a complete evaluation cycle.
BSP calls on due process to create an efficient framework
BSP has contacted the Thai legislature, especially the financial institutions of the House of Representatives and the Senate, the financial institutions and the currency lending federation on the importance of customized supervision of the digital currency industry. The World Bank stressed that it is necessary to protect investors and avoid misuse by various bad actors.
In the absence of comprehensive laws, financial institution regulatory organizations are strictly prohibited from issuing new licenses to virtual asset service providers (VASPs). In the notepad signed by Vice Governor Chuchi Fonacier, the order came into effect on September 1 and will continue for three years.
However, if a financial institution already supervised by BSP wants to expand into VASP service projects, it can also submit an application within three years. The standard is that it has a "stable" rating in the regulatory evaluation framework.
Binance announced that it has been working hard to obtain the VASP license, which explains the right to operate in its country.