Utah has become the second US state to launch a regulatory ‘sandbox’, providing FinTechs the opportunity to apply for a special exemption when setting up their businesses.

A statement explained that the program allows participants to temporarily test innovative financial products or services on a limited basis without otherwise being licensed or authorised to act under Utah State law. The state’s Department of Commerce is responsible for applications and provides administrative oversight of the program.

It follows Arizona’s pioneering regulatory sandbox, which launched roughly a year ago. Since its enactment, the Arizona Regulatory Sandbox attracted a range of FinTechs to set up in the state.

“I’m excited about Utah’s Regulatory Sandbox and the chance it will give FinTech companies and entrepreneurs in Utah the chance to take innovative products and ideas to market without having to jump through the traditional regulatory hoops and licensing requirements which can be burdensome and costly,” stated Republican representative Marc Roberts.

The state government suggested that companies that may benefit from this new program could include peer-to-peer lending, credit extending services, money transmission and certain blockchain or cryptocurrency products.

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