Sandbox Intro

 

The Regulatory Sandbox was launched by Bank Negara Malaysia in October 2016, to provide a regulatory environment that is conducive for the deployment of financial technology and facilitate overall innovation in the Malaysian financial sector.

As advances in financial technology have led to the introduction of new business models and solutions, the Regulatory Sandbox seeks to encourage innovation and the delivery of financial services by granting regulatory flexibilities for fintech solutions with genuine value proposition to be experimented in a production or live environment. Such flexibilities will be accompanied by appropriate safeguards to preserve financial stability, integrity of financial transactions, ensure fair business conduct and fair treatment to consumers.

Activity in the Sandbox

Activities in the Sandbox

(As at end of August 2021)

102
Applications
submitted to date

Number of applications by sector

Insurance 29
Money Services 23
Payments 20
Banking & Lending 16
Others 14

(Cumulative number of applicants since the establishment of the Regulatory Sandbox)

Applicant(s) currently in the Sandbox

Company name Product Start Date
Vsure Tech Sdn Bhd Vsure August 2021
Qoala Technology Sdn Bhd Qoala.app May 2021
Pru-BSN Takaful Sdn Bhd Pru-BSN Aman November 2020
Jirnexu Sdn Bhd RinggitPlus October 2017

Sandbox Principles

Principles Behind the Sandbox

The establishment of the Sandbox Framework and broader efforts by the Bank to facilitate innovation in financial services are guided by three key principles:

Parity

Proportionality

Neutrality

Accordingly, regulatory requirements and risk parameters to be applied on Sandbox participants will be determined on a case-by-case basis guided by the principles above.

Applying to Sandbox teaser

Is the Sandbox right for you?

Conduct a quick self-assessment on whether the Sandbox is right for you.

Is your proposed business model or solution an activity regulated under Bank Negara Malaysia?

Are there regulatory requirements that pose a challenge for your business model?

The Regulatory Sandbox is not applicable to you. The Sandbox is intended as an avenue for the Bank to consider granting regulatory flexibilities to facilitate the growth of innovative financial services with genuine value proposition that may otherwise be impeded from doing so due to regulations. As such, it is a necessary condition that your business model relate the Bank’s scope of regulated activities and entities. You may refer to the Regulations page for further information on the Bank’s regulations.

Do you have a realistic business plan, a prototype or minimum viable product, as well as sufficient resources to support testing of your product in a live market environment?

You may consider applying to the Sandbox. Visit the Guide to the Sandbox Application page for details.

You should make further progress in the commercial and business development of your proposed solution before you apply to the Sandbox.

You may refer to the Regulations page for further information on the Bank’s regulations.

The Regulatory Sandbox is not applicable to you. The Sandbox is intended as an avenue for the Bank to consider granting regulatory flexibilities to facilitate the growth of innovative financial services with genuine value proposition that may otherwise be impeded from doing so due to regulations. As such, it is a necessary condition that potential regulatory impediments are identified clearly if you intend to apply to the Regulatory Sandbox.

The Sandbox is not applicable to you

 

Learn More--Regulation Sandbox

Learn More About the Sandbox

Understanding Regulations

Learn about regulations and BNM's role in the financial sector.

Visit the page

Guide to the Sandbox Application

Learn about the Sandbox application and assessment process.

Visit the page

See also: Sandbox Application Form

The Sandbox Story

Learn a bit more about the history of the Sandbox.

Read

Standards and Guidelines

List of standards and guidelines issued by BNM pertaining to the Regulatory Sandbox are available for public reference.

Visit the page

Frequently Asked Questions

If you have more questions about the Regulatory Sandbox, you may find the answers on this page.

Visit the page

Fintech Booster

Learn more about the Malaysian Digital Economy Corporation (MDEC) Fintech Booster programme.

Visit the site