Austria Considers Establishment of Fintech Regulatory Sandbox

The Ministry of Finance in Austria is considering establishing a regulatory sandbox for the fintech industry.The country’s Finance Minister Hartwig Loeger said that the FinTech Advisory Council — which was formed by the Ministry of Finance last year —  will aid in the development of relevant rules to steer the “young financial market around digitized financial services,” including initial coin offerings (ICOs) and digital currencies to facilitate their growth. To become a participant of the sandbox, companies will have to fulfill certain requirements, such as the development of a business model based on information, communication, or blockchain technology, among others. In February, Bahrain’s central bank revealed plans to launch a regulatory sandbox to allow blockchain and crypto companies to work in the country, pending formalized regulations. The initiative will purportedly enable firms “to test their solution on a limited number of users, with a limited number of transactions.”

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