The Securities and Exchange Commission of Pakistan (SECP) has instituted various reforms to develop a comprehensive and coherent industry policy to share regulatory thinking and promote a conducive FinTech environment in Pakistan, and the regulatory sandbox initiative is part of this agenda.
This was stated by SECP Chairman Aamir Khan while addressing a webinar on “Second Cohort of SECP’s Regulatory Sandbox”, organised by SECP to create awareness regarding the concept of Regulatory Sandbox and describe its benefits to industry and working modalities.
Aamir Khan said that the FinTech industry is growing significantly in Pakistan and can play a vital role in expanding financial inclusion.
However, he added, the innovations brought about by this growth pose a challenge for regulators and financial supervisors, who are tasked with reducing the uncertainty.
In order to address this challenge, Khan said, SECP has introduced the concept of Regulatory Sandbox, which provides a tailored regulatory environment to conduct limited-scale live tests of innovative products, services and business models under the regulator’s oversight.
The SECP chairman told particints that in the second cohort of Regulatory Sandbox, preference would be given to innovation in the areas of digital assets/ security token offerings (STOs), non-bank financial companies. —TLTP