Evaluation of applications for participation in Regulatory Sandbox begins

06-06-2024

6 June 2024, Baku: The Central Bank has commenced the evaluation process for applications to participate in the Regulatory Sandbox. This is part of the Bank's ongoing efforts to organize and manage activities within the Regulatory Sandbox regime.

In the first stage, the Bank received a total of 21 applications for participation in the Regulatory Sandbox. The applications are related to testing innovative products on virtual assets, payment services, as well as other areas of insurance and financial markets.

The initial evaluation of applications is currently underway. In the next stage, applications will be reviewed followed by the final evaluation. At this stage, the applications will be evaluated in terms of compliance with the requirements and final decisions will be made.

Note that the Regulatory Sandbox is a set of rules that include measures for testing innovative financial products in financial markets within a limited framework and controlled environment under the supervision of the Central Bank. Participants will test their innovative financial products based on the agreement to be concluded with the Central Bank. Innovative products that meet the Regulatory Sandbox criteria and have successfully completed the test are planned to be introduced to financial markets. Additionally, it is aimed to create a related regulatory framework.

The Regulatory Sandbox is expected to make a significant contribution to the protection of consumer rights, the effective management of potential risks in the financial sector and the enhancement of overall confidence in the financial system.