In order for economical technology to grow, some countries are giving firms freedom to experiment, lifting the burdens of limited regulation.
Switzerland, for just one, has introduced a good so-called regulatory sandbox, within which tiny fintech firms can take up without regulation.
“We will attempt to introduce the regulatory system that enables the market to grow without being hindered,” Jorg Gasser, Switzerland state secretary for overseas financial things told CNBC.
“[Fintech firms] will be able to agree to 1 million Swiss francs ($1.01 million) from their clients without the regulation. As soon as they increase out of that sandbox, the regulation will end up being according to their size,” Gasser said.
Switzerland also offers a tailor-made fintech license, which is much less taxing on little firms compared to a banking license. Gasser explained that it’s “better to handle and less expensive to establish.”
Gasser was first speaking on the sidelines of the Singapore Fintech Event, which includes brought over 25,000 participants to the Lion City.
Singapore’s central bank, the Monetary Authority of Singapore, also launched a good fintech regulatory sandbox last year. Since then, the MAS features received 30 applications from firms wanting to test their product without strict regulations.
Singapore and Switzerland have many similarities according to Gasser, which makes them ideal fintech hubs.
“We happen to be both neighbors of extremely important economic jurisdictions just like China, and [the European Union] for Switzerland. We are extremely open, very well connected, we have first class educational devices, infrastructure is great,” he said
Gasser said Switzerland could take a few lessons from Singapore’s fintech procedures.
“What we can learn from the situation here is the dynamics: The situation here is changing swiftly, fintech is normally blooming, flourishing,” he explained.