(Yicai Global) Nov. 21 -- The Hong Kong Monetary Authority (HKMA) will set up a fintech supervisory chat room to offer direct feedback to scientific innovation projects in the financial industry and stimulate sector development, Sina reported, adding that the chat room will open within the next few weeks.
Fintech companies often face constraints when undertaking innovative projects. The HKMA recently introduced the Fintech Supervisory Sandbox (FSS) to provide a virtual environment free of restrictions.
The FSS has covered 24 new products from nine banks since its inception, said Arthur Yuen, vice president of the authority. Next, the HKMA will upgrade the sandbox to version 2.0, which will include the fintech chat room. The authority will provide direct advice for FSS users in the early stage of fintech projects, he added.
The Fintech Supervisory Sandbox provides a test environment with loose regulatory constraints, allowing companies using financial technology that would be tough to implement under current laws and regulations. Within the sandbox, fintech innovators are somewhat exempt from regulation and can cut the time needed for their ideas to go to the market. The FSS can not only stimulate market innovation, but also set up a good communication mechanism between supervisors and innovators, China Securities reported.