Utah Launches Regulatory Sandbox to Boost Fintech

The sandbox will allow companies to test innovative finance products without full licensing by the state.

Utah Launches Regulatory Sandbox to Boost Fintech

Utah state in the the USA is launching a fintech sandbox programme, they announced over the weekend. The move follows the state of Arizona which was the first state the offer a regualtory sandbox to the same sector in July 2018.

The sandbox will allow fintech companies "to temporarily test innovative financial products or services on a limited basis without otherwise being licensed or authorised" by the state, according to the Utah Department of Commerce. 

By implementing the sandbox programme, Utah follows countries such as the UK, Malaysia, and Singapore. One such notable company to have emerged from such system is BitX which became Luno, and has recently been granted one of three Digital Asset Exchange (DAX) licenses in Malaysia.

The state of Utah aims to become a haven for fintech innovation. "The Utah Department of Commerceis looking forward to rolling out another innovative programme to support the growing financial technology industry," said Fracine A. Giani, the department's executive director.