Scope of the regulatory sandbox in the Fintech Industry in Ecuador
DOI:
https://doi.org/10.18272/ulr.v11i1.3252Keywords:
Fintech, regulatory sandbox, eligibility criteria, Policy and regulation boardAbstract
In 2022, the Ecuadorian Fintech Act was published and established the regulatory sandbox as a strategy to promote innovation. The Monetary Policy and Regulation Board issued secondary regulation about this figure. However, it established restrictive eligibility criteria, required triple authorization from various entities and allowed additional parameters to be added after the application. Also, it was not clear what benefits or exemptions could be obtained through the sandbox. This work showed that, when eligibility criteria are restrictive or can be set ex post, the regulatory sandbox is not an attractive strategy for innovators. As a result, the regulation issued by the Board is not appropriate, and is also illegal. Therefore, this investigation recommended that the benefits that can be obtained should be clarified, which should vary depending on the objective pursued by the sandbox. In addition, this work recommended that non-restrictive nor ex post eligibility criteria should be implemented.
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