Adoption of the regulatory sandbox for Fintech: Recommendations from the UK and Singapore practices

Abstract

For recent years, the Fintech’s rapid growth has brought about financial products and services with cutting-edge innovations to both consumers and businesses, thereby spurring the modernization of the financial system. However, it entails special procedures for supervision and monitoring of the risks posed to the financial system as well as to the economy as a whole. An ideal solution to this issue, derived from the international practice, is to establish a regulatory sandbox. This article uses a case study research method and secondary data to examine the practice of the UK and Singapore in establishing and implementing the regulatory sandbox for the Fintech sector. Based on the analysis results, recommendations for Vietnam to improve its legal regulations and efficiency in the implementation of the regulatory sandbox are put forward.