Regulatory sandbox: Decrypting Indonesia's attempts to regulate fintech disruption
Keywords:
Regulatory sandbox, Fintech, Sharia fintechAbstract
The rapid development of Fintech and Shariah Fintech in Indonesia presents concerns because fintech development considerably outpaces the rate at which regulators issue legal standards. Then, implementing the Regulatory Sandbox is the most excellent solution to this problem. As a result, this article aims to compare the regulatory sandbox frameworks of Indonesia and Malaysia. The qualitative research method was used in this study. Data will be gathered through library research and a semi-structured interview. A comparison method is also used to analyze the data. A lack of study also compares the Indonesian version of the Regulatory Sandbox to the Malaysian version. However, implementing the Regulatory Sandbox in Fintech and Shariah Fintech in Indonesia needs to be improved. The findings of this study show that the Malaysian version of the Regulatory Sandbox is more accessible to assess than the Indonesian version because the assessment is agreed upon by both parties, Fintech players and the Central Bank of Malaysia (BNM), and the Malaysian version of the Regulatory Sandbox has a more apparent status of permitted or rejected. The Malaysian Central Bank oversees the Regulatory Sandbox, making the process faster, more effective, and efficient. Implementing the Regulatory Sandbox has led to a 10% decline in registered Shariah Fintech and a 100% increase in licensed Shariah Fintech. Aside from the sandbox, the enabling components that assist Shariah Fintech in Malaysia in developing swiftly are regulatory factors, good educational institutions, and infrastructure that satisfies research needs to promote the expansion of Malaysia's Fintech industry.
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