InvestHK is out with a laudatory statement regarding the Hong Kong Monetary Authority’s decision to “upgrade” its FIntech Supervisory Sandbox with new features. FinTech Sandboxes have also been announced by the Securities and Futures Commission (SFC) and the Insurance Authority. These actions mean that pretty much all aspects of Fintech are being supported by Hong Kong regulators, an important policy approach.
While Hong Kong may have been a bit slow out of the gate in embracing innovations in finance, recently the Fintech industry in Hong Kong has seen a surge of activity and both public and private support.
Charles d’Haussy, Head of FinTech at InvestHK, commented on the actions by officials;
“The Hong Kong regulators’ decision to launch these sandboxes shows their determination to support the development of Fintech in the city, and is a compelling reason for Fintech start-ups from overseas with an eye on the mainland China and Asia markets to base themselves in Hong Kong. The sandboxes will benefit many of Hong Kong’s key Fintech areas, such as Blockchain, cyber security, Regtech, Insurtech and more. The regulators’ initiative is sure to be widely discussed during the upcoming Hong Kong Fintech Week, which runs from 23 to 27 October.”
InvestHK is the department of the HKSAR Government that seeks to attract foreign direct investment and support overseas and Mainland businesses to set up or expand in Hong Kong. Fintech was added as a key area of focus about a year ago and since that time movement in the sector has picked up speed. d’Haussy explained to Crowdfund Insider this past June the level of commitment and effort being placed into making Hong Kong the Asian Fintech hub.
The concept of a regulatory Sandbox was first initiated by the UK FCA. Since that time, many different countries have created Fintech Sandboxes to allow financial innovators to work with regulators to launch innovative forms of finance. The one developed country that has not embraced the concept is the USA.
Hong Kong is holding a week long event dedicated to Fintech innovation this October.
Additional information on the three different Fintech Sandboxes may be viewed here.