The Spanish Association of Fintech and Insurtech Companies (AEFI) and the company Hogan Lovells demand the immediate approval of the sandpit as an essential element in order to generate new initiatives that accelerate the transformation of financial innovation in Spain.. They also said that dozens of financial technology-related projects are waiting for approval. This was reported to Cointelegraph in Spanish through a statement released on June 3rd.
According to AEFI and Hogan Lovells, this would encourage increased competition, remove barriers to access and streamline processes in the fintech sector, in a scenario as delicate as the current one, which was derived from the COVID 19 crisis.
The aforementioned association and the company have explained this There are already many national and international projects whose implementation is waiting for the Spanish sandbox, which is currently in parliamentary procedure after approval by the Council of Ministers on February 25th. the bill for the digital transformation of the financial sector, which includes the creation of the regulatory “sandbox”. Currently, the Economic Committee has just appointed the alternates who will be part of the presentation, which will discuss the text to approve or reject the proposed changes.
“In addition to an immediate implementation, which makes it possible to maintain the competitive advantage, AEFI and Hogan Lovells call for the mobilization of the resources required for the foundation by public institutions and the other actors involved, especially with regard to trained personnel and qualified in the competent organisms ambitious implantation, which enables Spain to position itself as one of the reference countries in the field of fintech regulation, to promote the attraction and preservation of national and international talents, and to facilitate cooperation between all players in the industry by investing in fintech, as the project provides that financial institutions and venture capital can invest in and work with startups. It should be noted that the Spanish sandbox gives access to projects within the European Union and offers the opportunity to make our country one of the leading countries in the Ber to position the fintech regulation, “says the statement.
Rodrigo García de la Cruz, President of AEFI (Spanish Association for Fintech and Insurtech), said:
“In the current scenario that has occurred after the COVID 19 pandemic, the immediate approval of the sandbox is needed more than ever to promote the fintech ecosystem, the units of which can become a fundamental part of solving the financial crisis derived from the water utility But they need elements to achieve financing and an optimal regulatory environment. “
They claim that there is no time to waste
With this in mind, AEFI warned that Spain can no longer waste time as there are countries that are already actinglike Brazil, which has just launched its sandbox; the UK, which has already started a second round, has adapted to the COVID 19 scenario; or Italy, which is also driving the approval process for its sandbox. AEFI and Hogan Lovells estimate that an immediate introduction of the regulatory sandbox will create 5,000 more jobs and attract an additional 1,000 million investments over the next two years. They also believe that this will promote competitiveness and technological development, although delaying the project could result in Spain losing this opportunity.
Jaime Bofill, partner of Hogan Lovells, also shared a few words on the subject:
“The Spanish sandbox is ambitious and effective because it has gathered the best from other sandboxes that have already been successfully implemented. and innovative because it represents a revolution in the financial sector and enables high-level projects that have been parked because they do not fit the law exactly and can now also carry out technology-based financial projects that are new and benefit the market, consumers or of the financial system in general. “
Leave the crisis derived from Covid-19
In the current financial crisis scenario, derived from COVID-19, the fintech ecosystem is working to play a leading role in the emergence of the crisis, although there are some financial constraints that are exposed to the COVID-19 pandemic By the AEFI call for some measures related to changes in the norm of ICO loans so that these companies are considered Spanish SMEs. An example is the creation of a public-private co-investment fund for loans that become capital if they are not repaid to the United Kingdom, share-specific funding lines, activation of incentive programs for national and international investors that complement legislative developments, and reforms and promote projects in the Spanish economy, such as Sandbox itself.
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