5
DFSWG INNOVATIVE REGULATORY APPROACHES TOOLKIT
FIGURE 1: APPROACHES TO REGULATING FINTECH
LEVEL OF EXPERIMENTATION ENABLED
EXTENSIVE
EXTENSIVE
CASE BY CASE
STRUCTURED EXPERIMENTAL APPROACH
LIMITED
LEVEL OF REGULATOR INVOLVEMENT
LIMITED
INCREMENTAL CHANGES /HANDS OFF
SINGLE WINDOW
Source: World Bank (2018)
FIGURE 2: THE FINTECH REGULATORY CONTINUUM
REGULATOR ACTIVITY
INNOVATION HUB
> General market monitoring and enforcement
> Informal intelligence gathering
> Licensing
> Non-binding guidance and support
> Providing waivers/ exemptions or letters of no objection
> Bilateral discourse with stakeholders
REGULATORY SANDBOX > Live testing > Authorization decision for new FinTechs > Determination of necessary changes to rules or regulation
