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With the rise of new technology and digital transformation in recent years, Vietnam's government has been working on a regulatory framework to govern financial technology (fintech) activities in the country. Back in 2020, the first ever draft of a regulatory sandbox was released, with the expectation that Vietnam would soon have a regulatory framework for fintech to keep up with this global trend. However, there has been no development in the launch of the sandbox until early this March 2024.
On 4 March 2024, the State Bank of Vietnam (SBV) released a new draft decree ("Draft Decree") on the regulatory sandbox for the banking sector in Vietnam. The Draft Decree proposes a comprehensive framework for a regulatory sandbox program applicable to fintech solutions ("Regulatory Sandbox") by detailing, among others, eligible solutions, eligibility criteria for service providers, and requirements for participation.
The Draft Decree introduces various changes and new proposals compared to the previous versions, with the following highlights:
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