Amendments to the “Regulatory Sandbox Environment Procedure” Approved

A regular meeting of the Sandbox Council was held. During the meeting, seven key issues were discussed, including the testing of new products and services within the sandbox environment, extension of the testing period, transition out of the regulatory sandbox, and amendments to the “Regulatory Sandbox Environment Procedure.”

The Sandbox Council convened its regular meeting to discuss a total of seven issues, including testing new products and services within the sandbox environment, extending the sandbox trial period, transitioning services out of the regulatory sandbox, and amending the “Regulatory Sandbox Environment Procedure.”

As a result of the meeting, the Council supported the proposed amendments to the procedure and issued several recommendations. These included allowing “Fundia” LLC to exit the sandbox environment with its rewards- and donation-based crowdfunding service, while continuing to test its equity-based crowdfunding service for an additional six months. The Council also approved the one-year extension of the sandbox trial period for “Fund Me Exchange” LLC’s short-term B2B lending service.

Furthermore, it recommended implementing the transition plans for both “Zeel MN Platform NBFI” LLC and the “Mongolian Securities Dealers Association” NGO to move out of the sandbox framework. It was also decided to allow “Finberry” LLC to exit the sandbox with its crowdfunding service and to extend the transition period for “Moni Market Fund” LLC. Additionally, restrictions were proposed for newly introduced services undergoing further testing.

The regulatory sandbox environment is designed to provide a controlled space to test innovative financial products and services based on technological advancements. It also serves as a framework to develop tailored regulations for products and services that successfully pass the testing phase. As of today, a total of nine products and services from five companies are currently being tested within the sandbox.

New members have been appointed to the Sandbox Council, including L. Sonor, Director of the Financial Policy Department at the Ministry of Finance; L. Tur-Od, President of the Mongolian National Chamber of Commerce and Industry; and B. Davaasuren, Vice President for Planning and Investment and Professor at the National University of Mongolia.

Source: www.frc.mn