To date, eight FinTechs have been admitted to the Austrian Financial Market Authority’s (FMA) Regulatory Sandbox since it was launched on 1 September 2020. The sandbox offers them the possibility to develop their innovative business models through to regulatory maturity in a protected environment. Five of these providers are targeting an authorisation as European Crowdfunding Service Providers (ECSPs[1]) in accordance with the EU Crowdfunding Regulation. The other three intend to conduct innovative financial services in relation to cryptoassets and financial instruments in such a way that requires a licence under the Securities Supervision Act 2018 (WAG 2018; Wertpapieraufsichtsgesetz 2018) or the Austrian Banking Act (BWG; Bankwesengesetz). In addition to newly founded start-ups, established and licensed providers have also been using the Regulatory Sandbox to develop innovative business branches and models towards regulatory market maturity.
At the start of 2022, the first sandbox participant was able to be granted a licence for operating a digital trading platform for transferable securities. One virtual asset service provider and a crowdfunding service provider have already submitted registration and licence applications. The other participants are still at a stage in which they are in close consultation with the supervisor in drawing up the conditions for obtaining a licence.
A condition for admission to the sandbox is a positive opinion from the Regulatory Sandbox’s Advisory Board, which is made up of experts from public administration, finance, academia and the supervisor. The Advisory Board is required in the authorisation procedure to examine the real economic interest both in macroeconomic terms and from a political perspective regarding its location, as well as its innovative character as well as the maturity for testing of the business model.
Further information about the Sandbox may be found on the FMA website at https://www.fma.gv.at/en/fintech-point-of-contact-sandbox/fma-sandbox/.
Journalists may address further enquiries to:
Klaus Grubelnik (FMA Media Spokesperson)
+43 (0)676 88 249 516 or
+43 (0)1 249 59 – 6006
[1] Regulation (EU) 2020/1503 on European Crowdfunding Service Providers (ECSPs)