The central bank of Lithuania has announced plans to oversee fintech companies’ operations in the country, where they will be invited to test their products by creating customised regulatory sandboxes.
Fintechs will be able to test their solutions “in the real marketplace, with real customers”, said the bank.
As reported by Banking Technology online, the companies accepted for the regulatory sandbox will be eligible to certain reliefs pre-agreed with the regulator, such as simplified incorporation and licensing procedures (including the temporary lifting of some supervisory requirements).
“By creating an innovation-friendly space, we aim at ensuring the best possible conditions for the further development of financial technologies, creating the most favourable environment for fintech companies in the whole of the Nordic and Baltic region,” said Vitas Vasiliauskas, chairman of the board of the Bank of Lithuania.
“This is an ambitious goal, so we would like to hear what the sector has to say on the matter. We invite all interested parties to attend our public consultations, share their suggestions.”
In a separate report, Finextra online noted that Lithuania is bolstering its credentials as an EU-friendly destination for Brexit startup refugees with the proposed opening of a regulatory sandbox for aspiring firms to test their products ahead of commercial roll out.