{"id":39203,"date":"2023-10-20T15:01:20","date_gmt":"2023-10-20T15:01:20","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/asic-launches-world-first-licensing-exception-to-help-fintech-startups-startupsmart\/"},"modified":"2023-10-20T15:01:20","modified_gmt":"2023-10-20T15:01:20","slug":"asic-launches-world-first-licensing-exception-to-help-fintech-startups-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/asic-launches-world-first-licensing-exception-to-help-fintech-startups-startupsmart\/","title":{"rendered":"ASIC launches “world-first” licensing exception to help fintech startups – StartupSmart"},"content":{"rendered":"
\"Prime<\/div>\n

A new\u00a0licensing exemption will enable Australian fintech founders to test innovative services and products with up to 100 retail customers without an Australian financial services or credit licence.<\/p>\n

The Australian Securities and Investments Commissions (ASIC) released details of the \u201cworld-first\u201d licensing exemption on Thursday, along with a regulatory guide<\/a>\u00a0that includes information on Australia\u2019s regulatory sandbox for early-stage fintech startups.<\/p>\n

Read more: Australian startups to get access to a \u201cworld-leading\u201d regulatory sandbox<\/strong><\/a><\/p>\n

The aim of the initiative is to help reduce the barriers for innovative products and services to enter the financial market by making it easier for fintechs to validate and refine concepts before the expensive licensing process.<\/p>\n

Earlier this year, when ASIC proposed the licensing exemptions, Stone & Chalk chief executive Alex Scandurra said it would be a \u201cgame-changer\u201d.<\/p>\n

\u201cIf implemented, not only would Australia\u2019s sandbox lead the world and leapfrog what the UK is contemplating, it would provide a strong proof towards the successful collaboration between leaders in the fintech community, ASIC and the federal treasury that started late last year,\u201d Scandurra said.<\/p>\n

How it works<\/h3>\n

Startups that qualify for the exemption will be able notify ASIC that they are using the sandbox instead of going through a costly and time-consuming approval process.<\/p>\n

Then, within 12 months, they will be required to obtain a financial services licence to continue formally operating.<\/p>\n

To use the sandbox,\u00a0startups must also meet a number of obligations including:<\/p>\n