Cooperation between regulators could expand opportunities to test financial products across two markets.
A new route for fintech projects
The central banks of Azerbaijan and Uzbekistan have agreed to work on shared use of regulatory sandboxes, CBA Governor Taleh Kazimov said at his 29 October press conference while discussing cooperation with foreign counterparts.
He said the approach would allow startups operating in one country’s sandbox to enter the other market. The statement did not disclose detailed participation terms, eligible product categories or an application opening date.
A regulatory sandbox provides a setting for limited trials of financial solutions under regulatory supervision. It allows a team to test its product, customer safeguards and interaction with financial infrastructure before scaling.
| Stage | Details still needed |
|---|---|
| Project selection | Eligibility and product categories |
| Pilot | Limits, customer safeguards and reporting |
| Scaling | Commercial launch requirements |
Testing versus a full market launch
Cross-border regulatory cooperation could reduce organisational barriers when a startup prepares a second pilot. Clear requirements for reporting, data handling and risk management are particularly important. Participation costs and timelines cannot be assessed until the rules are published.
Access to testing differs from permission to serve an unrestricted customer base. A commercial launch may require separate authorisation, a banking partner and compliance with the host jurisdiction’s requirements.
The initiative’s practical value will depend on pilot outcomes: projects reaching customers, approval timelines and evidence of product demand. It offers a potential expansion route for the fintech ecosystem, with the detailed operating framework still to be established.
