Tashkent, Uzbekistan (UzDaily.uz) — The Central Bank of Uzbekistan has drafted a new version of the regulation governing the special legal regime known as the “regulatory sandbox” for testing financial services. The draft has been published on the portal for discussion of draft regulatory legal acts.
The new version is expected to replace the existing regulation adopted in October 2022. The draft clarifies participation conditions, requirements and obligations for participants, as well as the procedure for reviewing applications.
One of the key changes will be the division of projects into three tracks: innovation, acceleration and technology partnership.
The innovation track is intended for developers of services based on new, unconventional or previously unused approaches in the market. Such projects must aim to eliminate inefficiencies, meet customer needs, improve financial inclusion and deliver specific benefits.
The acceleration track will be used to test financial services that are new to the Uzbekistan market but have already been tested or implemented in other countries. Applicants will have to demonstrate that the service can be scaled up if testing is completed successfully.
The technology partnership track will allow banks and other organisations to test technical solutions designed to improve financial services. Such developments must not violate existing legislation or regulatory requirements.
Projects under the acceleration track may be tested for up to 12 months, with the possibility of a further six-month extension. The standard testing period of up to three years will remain in place for the other tracks.
Applications, their review, testing monitoring and data exchange between the Central Bank and participants will be conducted through a dedicated electronic platform.
Before submitting an application, companies will be able to receive preliminary consultations. These may include an assessment of the business model and mechanisms for delivering the service, determining whether it can be tested in the sandbox, discussing legal and technological issues, and identifying potential consumer, operational and other risks.
The draft places particular emphasis on cybersecurity and information protection. Applicants will have to provide information on measures to ensure cybersecurity and information security, as well as the protection of personal data and banking secrecy.
The inability to ensure cybersecurity and confidentiality for technical reasons could serve as grounds for refusing to grant the special regime. The Central Bank may also reject an application if proposed legislative changes considered necessary to implement the service are deemed inappropriate.
The application review period will remain 40 working days. However, notification of the decision is planned to be sent to the applicant within one working day instead of three.
A participant could be removed from the sandbox if it remains inactive for six months after the project is launched. Cybersecurity incidents resulting in the leakage or loss of confidential data could also lead to termination of the special status.
Comments and proposals on the draft will be accepted until 26 September.
