Austria Could Establish a Fintech Regulatory Sandbox for Blockchain Technology Industry
Austria could soon establish a new regulatory sandbox for fintech companies to start operating and entering the market.
The information was released by Cointelegraph on April 26. The intention is to steer the financial market and improve digitized fintech services. Surprisingly, this includes Initial Coin Offerings (ICOs) and virtual currencies.
Austria Could Implement a Fintech Sandbox
According to the reports, the country’s Finance Minister, Hartwig Loeger, explained that the FinTech Advisory Council will be creating relevant rules that will be used to promote the fintech industry. This is very important because there are just a few countries that have implemented friendly regulations for virtual currencies, ICOs and the fintech industry.
On the matter, Hubert Fuchs, State Secretary, commented:
“For some companies in the fintech industry, it is particularly difficult to keep track of all regulatory requirements and developments right from the start. Many of them give up and discard their business models. We want to take countermeasures against this.”
There will be fintech companies that will test and improve their business models as soon as this sandbox is implemented. Companies will have to fulfil specific requirements in order to be able to participate in this sandbox. The new sandbox developed by Austria received support from the Financial Conduct Authority (FCA) in the United Kingdom (UK).
At the same time, Loeger mentioned that the digitization of the financial services sector is a very important area for Austria and its future. These technologies and startups are going to innovate with new business models and improve the future of the country.
There are other countries around the world that are implementing regulations for virtual currencies. Some of these jurisdictions include Malta and Switzerland. There are several firms that are locating their business operations there and are trying to expand in the market with clear regulations.
Other countries such as Japan or South Korea have implemented regulations that are very strict and that allow regulatory agencies to control the companies and firms operating in their territories.