Our Regulatory Sandbox Framework
The Sandbox provides an environment whereby FinTech companies can safely test their innovative digital financial solutions tailored to the Tongan context, to help address gaps in access and affordability of financial services in Tonga. FinTech applicants can apply to the Reserve Bank to test their services in a live environment, bounded by clear parameters, legal guidelines, appropriate safeguards and well-defined terms, and duration.This is to manage risk of a possible failure, protect consumers and maintain safety.
Regulatory Sandbox is a specific regulatory regime where innovative product (consistent with the definition and eligibility criteria of NRBT) can be tested to assess the associated risks, regulatory and compliance constraints, and the net impact on market or financial sector (including but not limited to the adoption, usage and quality) of these innovative products.
- NRBT Regulatory Sandbox Framework PDF • 274 KB
All tests within the Regulatory Sandbox will be subject to restrictions in order to mitigate potential risks during the testing stage.
The NRBT may provide certain regulatory exemptions and reliefs within the regulatory sandbox to offset potential regulatory barriers that may prevent implementation of the innovative product.
To facilitate roll-out of the innovative product after the successful test, the NRBT may decide to initiate amendments in regulations within its mandate.
Potential applicants will be able to ask for additional guidance regarding regulatory expectations from the NRBT during the testing phase within the Regulatory Sandbox.
It is expected that the Regulatory Sandbox will attract Applicants and stimulate competition.
Transparency
Engagement
Consumer protection
Financial inclusion objectives
Risk Mitigation
Fair Competition
Time-bound
Focus on results
Indemnity
Finality of decisions
The National Reserve Bank of Tonga (Reserve Bank) was established on 1 July 1989 as the central bank of Tonga.