In line with the vision of the Royal Government of Cambodia to innovate financial technology (“FinTech”) in the non-banking financial services industry in Cambodia, the Non-Banking Financial Services Authority (“NBFSA”) issued Prakas No. 037 on FinTech Regulatory Sandbox in Non-Banking Financial Services Sector dated 4 August 2023 (“Prakas”). The Prakas aims to introduce and manage a sandbox environment for FinTech in sectors regulated under NBFSA to test out new products. Regulators currently supervised by NBFSA are required to issue guidelines setting out details in which companies can partake in testing out their FinTech products in the sandbox environment.
In line with the Prakas, on 7 August 2023, the Securities and Exchange Regulator of Cambodia issued Guideline No. 009/23 on the Regulatory Sandbox in Securities Sector (“Guideline”). The Guideline replaces the presiding Guideline No. 001/22.
Under the Prakas and the Guideline, “FinTech Regulatory Sandbox” refers to an environment that allows a company to experiment its new Financial Product and Services (FPS) with actual customers within a well-defined space and under limited duration, before the official launch and circulation of the product on a larger scale.
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