Chairman of the Financial Regulatory Authority (FRA), Islam Azzam, affirmed on Saturday that the authority continues to build a flexible regulatory environment capable of keeping pace with rapid developments in financial technology, while ensuring market stability and protecting consumer rights.
To this end, the FRA, through its Committee for Reviewing Applications for the Use of Financial Technology, granted preliminary approval to two new projects to join its Regulatory Sandbox (FRA-Sandbox), covering asset tokenisation and digital identity verification.
The first project, submitted by Termiz Information Technology Company in co-operation with Granite Holding for Financial Investments, involves the digital transformation of a regulated money market fund using digital tokenisation technology.
It will establish a digital platform enabling assets, particularly investment fund units, to be represented on a controlled electronic ledger, enhancing the efficiency and transparency of issuance, transfer, redemption and asset lifecycle management.
The second project, submitted by VLens in co-operation with EFG Holding, concerns NFC ePassport identity verification. The solution will enable non-Egyptians to securely verify their identities using NFC-enabled mobile devices to read electronic passports in line with international standards, facilitating access to insurance, investment and other non-banking financial services.
Azzam said the approvals demonstrate the FRA’s commitment to supporting innovative technological solutions and developing non-banking financial services.
The approvals come ahead of the FRA-Sandbox annual summit on September 7, which will review the Sandbox’s first-year achievements and future of financial technology.
Executive Director of FRA-Sandbox, Ahmed Khalifa, said the two projects bring the number receiving preliminary approval to nine. He added that the Sandbox received more than 50 projects in its first year, with two progressing to actual testing.
