From childish things: the evolving sandbox approach in the EU’s regulation of financial technology
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Published version
Date
2023-03-03
Authors
McCarthy, Jonathan
Journal Title
Journal ISSN
Volume Title
Publisher
Taylor and Francis
Published Version
Abstract
The background to this article is the seeming revival of a sandbox approach to FinTech regulation within the EU, as epitomised by legislative initiatives on AI and DLT. The article contributes to existing literature on the topic by highlighting how the current design of sandboxes is not being informed by sufficiently comprehensive empirical evidence from international examples. As well as examining relevant provisions of the European Commission’s proposals on AI sandboxes and introduction of a DLT pilot regime, the article refers to UK and Australian examples to demonstrate the varying features of sandboxes. Even if there is continued ambiguity as to the characteristics of sandboxes, broader regulatory supports, such as innovation hubs, can be vital. However, this should not diminish the need for improved clarity and transparency on sandboxes’ operations. The ability to make necessary refinements will determine how the EU’s regulatory approach to FinTech generally will evolve.
Description
Keywords
Regulatory sandboxes , FinTech , Artificial intelligence , Distributed ledger technology , EU , AI
Citation
McCarthy, J. (2023) ‘From childish things: the evolving sandbox approach in the EU’s regulation of financial technology’, Law, Innovation and Technology, 15(1), pp. 1–24. Available at: https://doi.org/10.1080/17579961.2023.2184131