On November 14th, the law on the digital transformation of the Spanish financial system was published in the Official Gazette (BOE).
This law was enacted on November 13th and entered into force on November 15th.
Among the subjects it deals with, we can name: consumers and users, insurance companies, credit companies, economic policy, financial system, technology, etc. The full text of the law can be viewed here.
Rodrigo Garcia de la Cruz, CEO of Finnovating, referred to this issue through his LinkedIn account and stated: “I want to highlight this in the measures contained in this law It’s about accompanying the digital transformation of the financial system and focusing on two main goals”.
And he stated: “On the one hand, it is intended to ensure that the tax authorities have adequate instruments at their disposal so that they can continue to optimally fulfill their functions in the new digital context. The second is to facilitate the innovation process in order to achieve more equitable development through better access to finance for the different productive sectors and the recruitment of talent in a highly competitive international technological environment.”.
On November 4th, Cointelegraph en Español reported that the Senate Committee on Economy and Digital Transformation in Spain had finally approved the law on the digital transformation of the financial sector, which includes the development of the sandbox.
In this context, they issued a statement from the Spanish Association for Fintech and Insurtech (AEFI) in which they had stated: “The immediate start-up will enable the generation of new initiatives in the fintech ecosystem, facilitate access to finance, promote competition and remove barriers to entry. “
Keys to Understanding What The Spanish Financial Sandbox Is Made Of
It should be noted that the Spanish Federation of Fintech and Insurtech Companies (AEFI) has been involved in the design and creation of the sandbox since 2017 when it started working on it, and published two documents in 2018. the “Proposal for the implementation of a sandbox in Spain” and the “Decalogue for the implementation of a sandbox in Spain”.
The AEFI estimates that this will stimulate the creation of nearly 5,000 new direct jobs in the fintech ecosystem over the next two years and attract additional investment of 1,000 million.
Reference country in the fintech world
In this way, Spain would position itself as one of the reference countries in the field of fintech regulation, attracting and promoting national and international talent, facilitating investment in fintech and opening the door for financial and capital companies to invest in and collaborate with startups .
In addition, they stated from AEFI that The Spanish sandbox would allow the entry of projects from across the European Union.
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