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Monday June 24th, 2019

CBE Pilots its Fintech Regulatory Sandbox

This month witnesses the launching by the Central Bank of Egypt of a pilot program in the field of financial technology (fintech) to evaluate the Regulatory Sandbox for Innovative Fintech Apps that was recently set up by the regulator. Fintech start-ups and technology companies specializing in Electronic Know Your Customer (e-KYC) solutions can apply to this round of pilot cohort although generally speaking, registered fintech service providers and licensed financial institutions (including banks) are eligible to apply to the CBE Regulatory Sandbox provided they meet the requirements and criteria related to the products/services they will test as set forth in the CBE’s Framework for the CBE Regulatory Sandbox. Published last month on the CBE’s website as a “guide for different stakeholders in the fintech system in Egypt,” the CBE Framework defines the contours of the CBE Regulatory Sandbox, with particular emphasis given to outlining the different stages that applicants go through in the Sandbox, their timeframes, and the reporting and procedural requirements and prerequisites. Notably and commendably, the CBE highlights throughout the Framework’s pages the lack of proper fintech legislation in Egypt and the Sandbox’s potential role in filling this regulatory gap, while simultaneously maintaining that the Framework itself will be regularly updated, at least biennially, to reflect changes in the market.

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