Lithuania to open FinTech regulatory sandbox
Written by Anthony Strzalek
Companies designing innovative financial products and business solutions will be provided with the possibility to test them in a new regulatory sandbox under a new initiative by the Bank of Lithuania.
The country’s central bank will supervise and provide consultations to FinTech firms as they test new financial products.
The plan is for it to be possible to apply certain alleviations to the testing area participants, agreed on with the regulator. For instance, companies would be subject to simplified establishment, licensing procedures; some supervisory requirements would temporarily not be applied. Should financial innovations pay off, companies would be able to start operating in normal conditions.
Both incumbents and newcomers to the financial sector will be able to use the testing space. Companies would be selected for the testing space based on certain criteria, the most important of which are the innovative character and benefits of a product or solution for the public.
Vitas Vasiliauskas, chairman of the board of the Bank of Lithuania, said: “In creating an innovations-friendly space we aim to provide the best possible conditions for the development of financial technologies and creating the most favourable environment for FinTech companies in the entire Nordic-Baltic region.”