Regulatory Alerts2024-02-22
Regulation on the Application of the Regulatory Sandbox
The Central Bank of the Republic of Azerbaijan issued this regulation to establish a formal framework for testing innovative financial products and services under a controlled Regulatory Sandbox regime. It outlines eligibility criteria, application procedures, and targeted regulatory exemptions for participants while mandating risk assessments, user protection measures, and ongoing Central Bank supervision through periodic reporting and inspections. The framework sets a maximum testing period of twelve months (extendable by six), defines clear success metrics and exit strategies, and requires successful participants to transition innovative products into the mainstream market.
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