In essence, the Fintech Sandbox is “light-touch” regulatory framework under which participants can develop, test and deploy FinTech innovations in the financial services space without immediately incurring all the normal regulatory consequences of engaging in such activity. Sandbox participants must register a legal entity in the AIFC and obtain a Sandbox Permission from the AFSA. If the firm is already authorised by the AFSA but is looking to develop a particular FinTech product, the authorized firm must obtain a Sandbox Permission from the AFSA. However, Sandbox participants are not subject to the full range of authorization, regulatory and supervisory requirements and processes normally applicable to regulated financial services and ancillary activities.
Following this period of innovation and development, Sandbox participants may elect to exit the Sandbox and seek full authorization from the AFSA to carry on the relevant business activities in the AIFC.
Firms considering the Fintech Sandbox option should refer to the Fintech Regulatory Sandbox Guidance, which is available on the AFSA website (www.afsa.kz).