The Australian government has published draft laws for “an enhanced regulatory sandbox” that will go easy on FinTech startups by letting them operate without a full license.
The Australian government has revealed drafts of the new regulatory framework that will relax licensing requirements for innovative new FinTech startups in the country. The new framework will enhance Australia’s sandbox for the testing of a wide range of FinTech products and services without the mandatory requirements to meet all licensing requirements of the Australian Securities and Trade Commission. Services can be tested for 24 months with firms required to adhere to consumer protections and disclosure requirements.
The new framework will allow FinTech firms to test and work on:
- providing holistic financial advice in relation to superannuation, life insurance and domestic and international securities;
- issuing and facilitating consumer credit;
- issuing non-cash payment products; and
- providing a crowd-funding service.