The need for international fintech collaboration
Explosive technological development within the financial
services sector has left regulators struggling to keep pace with
innovation. In many jurisdictions, financial regulators have sought
to strike a balance between supporting fintech businesses and
upholding their mandates of protecting consumers, regulating
industry, and creating financial stability. Achieving that balance
has proven a challenge.
Regulators try to keep up with innovation in financial
technology
Some forward-thinking regulators have attempted to achieve this
elusive goal by creating a regulatory "sandbox": a
mechanism that permits businesses to test their ideas and
innovative products in a live environment without following some or
all legal requirements, under the supervision of the regulator. The Canadian Securities
Administrators' regulatory sandbox, for example, permits
eligible businesses "to register and/or obtain exemptive
relief from
