Regulatory sandbox framework, updated in August and published in September 2018. An excerpt appears below:
Regulatory Framework History: This Framework was first issued in May 2017. It was subsequently amended in August 2017 according to circular EDBS/KH/C/40/2017 dated 28th August 2017 to allow both existing solutions that have already been technically tested in a lab environment, as well as ideas yet to be developed to be tested in the Regulatory Sandbox. The Framework was amended and reformatted in August 2018.
- The Regulatory Sandbox eligibility criteria includes the following:
- (a) Innovation: The solution must be truly innovative or significantly different from existing offerings, or offer a new use for existing technologies, as evidenced by market research, and a comparison of the key features of the Applicant’s technology or operating methodology against competitors.
- (b) Customer benefit: The solution must offer identifiable direct or indirect benefits to customers (e.g. customer research showing improved security, customer experience, efficiency, quality of product, lower prices, a combination of any of the above, etc.) These must be supported with quantifiable estimations or demonstrations where possible.
- (c) Technical Testing for existing Solutions: In case of existing solutions, results of the technical testing must be made available to the CBB. Alternatively, an independent external validation from a reputed third party of the technical soundness of the solution must be obtained.
- (d) Readiness for regulatory testing: The Applicant must show welldeveloped regulatory testing plans and sufficient safeguards to protect volunteer customers. Key risks of the solution and how they can be mitigated must be separately highlighted.
- The Applicant must demonstrate eligibility to the satisfaction of the CBB by showing clear evidence as outlined above or in any other applicable way acceptable to the CBB.
- The Regulatory Sandbox may not be suitable in such cases as where the Applicant has no intention to deploy the solution in Bahrain on a broader scale after successfully exiting the Sandbox.