---
title: "What is Regulatory sandbox? | IslamicOpenFinance™"
description: "A regulator's framework for testing new financial products with real customers, under agreed conditions and close supervision."
url: https://islamicopenfinance.com/glossary/regulatory-sandbox/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Open finance and APIs](https://islamicopenfinance.com/glossary/#open-finance)

Open finance and APIs

# Regulatory sandbox

A regulator's framework for testing new financial products with real customers, under agreed conditions and close supervision.

A regulatory sandbox lets firms test innovative financial products or services with real customers under conditions agreed with the regulator, in some schemes with certain requirements relaxed, subject to safeguards and supervision. Bank Negara Malaysia's sandbox, for example, offers a standard track for fintech companies and a faster green lane for financial institutions with strong risk management records. Other schemes, such as the UK Financial Conduct Authority's, do not exempt firms from authorisation but give access to regulatory expertise.

## Sources

- [Bank Negara Malaysia, Regulatory Sandbox](https://www.bnm.gov.my/sandbox)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Open finance provider** A firm licensed to offer data sharing or service initiation to customers under an open finance regime.](https://islamicopenfinance.com/glossary/open-finance-provider/) [**Shariah supervisory board** An independent panel of Shariah scholars that approves an institution's products and oversees its Shariah compliance.](https://islamicopenfinance.com/glossary/shariah-board/) [**Open finance** Customer-permissioned sharing of financial data, and initiation of services, by licensed third parties through secure interfaces.](https://islamicopenfinance.com/glossary/open-finance/)

**Open finance and APIs**

1. [Open finance](https://islamicopenfinance.com/glossary/open-finance/)
2. [Application programming interface (API)](https://islamicopenfinance.com/glossary/api/)
3. [Consent (open finance)](https://islamicopenfinance.com/glossary/consent/)
4. [Data sharing (open finance)](https://islamicopenfinance.com/glossary/data-sharing/)
5. [Service initiation](https://islamicopenfinance.com/glossary/service-initiation/)
6. [Data holder](https://islamicopenfinance.com/glossary/data-holder/)
7. [Open finance provider](https://islamicopenfinance.com/glossary/open-finance-provider/)
8. [API hub](https://islamicopenfinance.com/glossary/api-hub/)

[All 221 terms](https://islamicopenfinance.com/glossary/)