South Korea’s regulatory sandbox has helped create almost 380 blockchain and other fintech jobs and generated around $110 million in investments.
According to Shina Ilbo, the sandbox is overseen by the government’s financial regulator, the Financial Services Commission, or FSC. It temporarily exempts companies from various regulations regarding financial services to aid with innovation and growth.
The report said that 16 companies have been recognized for their growth potential, and attracted more than 136.4 billion won ($110 million) in new investments.
Some of the companies participating in the government-sponsored program are pursuing business across 14 countries in Asia, including Indonesia, Thailand and Vietnam.
Within the sandbox, the FSC is assessing the usefulness and security of blockchain technology for things like real estate, chatbot services, and artificial intelligence-powered credit evaluation.
Testing environment expands
Regulatory sandboxes like South Korea’s have been hailed by many in fintech as a good way for governments to get more comfortable with emerging technology without stifling technological innovation and development.
Throughout the year, the FSC is expected to hold committee meetings focused on different sectors like banks, insurance, and credit .
Cointelegraph reported on May 2 that the FSC authorized nine companies, including those related to blockchain, to operate in the sandbox.
Cryptocurrency exchange Bithumb announced in January that they would invest more than $8 million into South Korea’s sandbox.