Hong Kong to follow UK's internet finance sandbox mechanism

Rage Comment : The UK Financial Conduct Authority pioneered the introduction of a sandbox mechanism in the field of Internet finance, providing a good development environment for blockchain and other technologies, and has become a model for Singapore, Australia, Abu Dhabi, etc. Recently, the Hong Kong Monetary Authority has also begun to imitate and introduced a similar sandbox mechanism, but unlike the FCA, which is aimed at start-ups, this project serves banks and provides them with a relaxed regulatory environment to promote related technology exploration and obtain better results.

Translation: Annie_Xu

Hong Kong has recently begun to follow the lead of the UK’s Financial Conduct Authority (FCA) in developing its own financial technology development plan.

The Hong Kong Monetary Authority (HKMA) has launched a sandbox mechanism to allow companies to test technologies and ideas that are not currently regulated.

Norman Chan

Norman Chan, senior executive at the HKMA, said:

"Banks can test new Internet financial products within the sandbox mechanism without having to comply with the HKMA's regular regulatory requirements."

"This will allow banks to more conveniently and orderly collect real-world data and user feedback on their Internet financial products and services, so as to make appropriate adjustments before fully issuing products. The HKMA does not intend to list one by one which regulatory requirements will be relaxed in the sandbox."

The sandbox mechanism is for banks that wish to participate in testing blockchain technology, biometrics, augmented reality and robotics; interested banks need to contact the HKMA directly.

The FCA first launched the sandbox mechanism after the success of Project Innovate. The UK sandbox mechanism supports start-ups, while Hong Kong is for banks.

And after FCA, Singapore, Australia and Abu Dhabi have followed suit.