Section 19Part 2 — Registered Persons and Virtual Asset Service Licensees
Application for a sandbox licence
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The Authority may require — Virtual Asset (Service Providers) Act (2024 Revision) Section 19
a person applying to be registered or a registered person; or
a person applying for a virtual asset service licence or a virtual asset service licensee, to apply, instead, for a sandbox licence where the Authority determines that —
the virtual asset service represents an innovative use of technology or uses an innovative method of delivery that requires supervision and oversight that is not offered by a licence or registration under this Act or any other law;
it is in the best interest of the public, existing licensees, licensees, registered persons or the financial markets for the virtual asset service to be temporarily restricted or for specific requirements to be placed temporarily on the provision of the virtual asset service;
the virtual asset service uses or promotes technology or method of delivery that may create systemic risk to the financial markets or otherwise to the jurisdiction; or
the virtual asset service poses a money laundering, terrorism financing or proliferation financing risk that is not properly mitigated by the Anti-Money Laundering Regulations (2023 Revision) or this Act , and the Authority shall cancel the registration or revoke the virtual asset service licence where it has required the person to apply for a sandbox licence.
A person under subsection (1) who has been directed by the Authority to apply for a sandbox licence shall do so in the manner specified by the Authority and shall provide such additional information in support of that application as the Authority may specify.
A fintech service provider may, but is not required to, apply for a sandbox licence in such manner as may be specified by the Authority.
An existing licensee who has provided notice and has been directed by the Authority to apply for a sandbox licence shall do so in the manner specified by the Authority.
An applicant for a sandbox licence shall pay the prescribed assessment fee at the time of submission of the application and the application fee as may be specified by the Authority within thirty days of notification of approval for a licence.
Where the sandbox application fee remains unpaid within thirty days of notification, the Authority shall cancel its approval of the sandbox licence.
An applicant for a sandbox licence shall provide such additional information in support of the application as the Authority may specify. Section 20 Virtual Asset (Service Providers) Act (2024 Revision)
The Authority in reviewing an application under this section shall take into consideration the matters set out in section 22 .