On approval of the ‘Regulation on the application of the Regulatory Sandbox’

16-02-2024

16 February 2024, Baku: The ‘Regulation on the application of the Regulatory Sandbox’ (the Regulation) was approved by Decision No 06/4 of the Management Board of the Central Bank of the Republic of Azerbaijan dated 31 January 2024 which took effect on 14 February 2024. The Regulatory Sandbox is a set of rules that regulates the testing of innovative services and products by legal entities in financial markets within a limited framework (territory, duration, number and size of transactions, number of participants or other restrictions) all under the supervision of the Central Bank.

The Regulation includes requirements established by the Central Bank for legal entities applying for participation, as well as products to be tested in the Regulatory Sandbox, circumstances terminating the right to participate in the regime, the conditions and procedures for applying the effective legislation governing financial markets to regime participants, supervision of activities of the regime participants and the maximum applicable period for the regime.

The Central Bank will announce the period for applying to the special regulatory regime one month in advance on its official website.

The adopted Regulation will contribute to introducing innovative services and products in financial markets of our country through the Regulatory Sandbox, thereby enhancing financial inclusion, as well as further improving the safety and accessibility of financial services for users.

For more detailed information on the new requirements please visit:

https://e-qanun.az/framework/56351