The Brazilian Central Bank approved on Wednesday (16th), through the publication of BCB Resolution No. 50, the operating rules for the first cycle of the so-called “regulatory sandbox”, which is an environment in which entities are authorized by the Central Bank to test innovative projects in the financial or payment areas for a specified period. Registrations for project selection by the Central Bank for the first cycle can be made from February 22 to March 19, 2021.

The first cycle will last for one year, and may be extended for the same period. The activities will start five business days after the result is published.

The Central Bank’s strategic priorities are projects that aim to: (i) solutions for the foreign exchange market; (ii) promotion of the capital market through credit market synergies; (iii) promotion of credit for micro-entrepreneurs and small businesses; (iv) solutions for the Open Financial System (Open Banking); (v) solutions for the Instant Payment Arrangement (Pix); (vi) solutions for the rural credit market; (vii) solutions for increasing competition in the National Financial System and the Brazilian Payment System; (viii) financial and payment solutions with potential effects of stimulating financial inclusion; and (ix) promoting sustainable finance.

Interested parties must comply with the rules for preventing money laundering and combating terrorism financing, as well as the Central Bank’s standards regarding complaint handling by customers and users. They must also make it clear to their clients that the product or service is being developed in the regulatory sandbox environment.