Fintech regulatory sandboxes : a comparative analysis between Malta and the EU

Abstract

Over the last decade, the FinTech sector has grown at quite a rapid rate. Due to this, issues in relation to areas of regulation have emerged. This has led to the adoption of Regulatory Sandboxes across various countries in an attempt to overcome regulatory barriers. Malta is one of such countries where a Regulatory Sandbox has been adopted by the Malta Financial Services Authority. On the other hand, the European Union has been adopting Regulatory Sandboxes in a way as to incrementally experiment with sectoral governance. This dissertation evaluates the differences and similarities which are present between the Maltese Regulatory Sandbox and the various Regulatory Sandboxes which are present in the European Union. It has a focus in relation to the protections which are provided or lack thereof for the authorities implementing the respective Regulatory Sandbox, the participants and third parties. Ultimately this dissertation provides insight to the workings of the Regulatory Sandbox. Chapter 1 will provide an analysis of the Maltese RS. Chapter 2 provides an analysis on the European Union Regulatory Sandboxes with a main focus on the European Union pan-blockchain sandbox. Chapter 3 discusses the main differences and similarities of the presented sandboxes. Finally, the conclusion addresses areas for future research, proposes changes to the Regulatory Sandboxes and provides for the limitations of this dissertation.