The Bank Negara Malaysia Regulatory Sandbox is a regulatory environment created by Bank Negara Malaysia (BNM) to support financial innovation in Malaysia. It allows eligible fintech solutions with a genuine value proposition to be tested in a live environment where existing regulatory requirements may otherwise restrict deployment, while applying safeguards to protect financial stability, transaction integrity, fair business conduct, and consumers. The framework includes the Standard Sandbox and the Green Lane, an accelerated pathway for qualifying regulated financial institutions.
Programme Overview
• Operator: Bank Negara Malaysia
• Purpose: Support the deployment and testing of innovative financial technology in Malaysia
• Approach: Allow eligible solutions facing regulatory impediments to test in a controlled live environment
• Safeguards: Protect financial stability, transaction integrity, fair business conduct, and consumers
• Tracks: Standard Sandbox and Green Lane
• Geographic focus: Malaysia
Sandbox Tracks
• Standard Sandbox: Enables eligible fintech companies and other applicants to test innovative financial solutions affected by regulatory requirements administered by BNM.
• Green Lane: Introduced in February 2024 as an accelerated pathway for qualifying financial institutions with strong risk management, compliance, and governance capabilities.
• Fintech participation: Fintech companies may participate in the Green Lane through an eligible financial institution responsible for the solution and safeguards. (bnm.gov.my)
Sandbox Activity
As of June 2026:
• Applications submitted: 139
• Solutions in testing: 5
• Green Lane solutions: 2
• Standard Sandbox solutions: 3
Applications by sector include Insurance (39), Money Services (25), Banking & Lending (25), Payments (24), and Others (26). (bnm.gov.my)
Solutions Currently in the Sandbox
• GX Bank Berhad — Income Estimation Model for Flexi Credit — December 2025
• TNG Digital Remittance Sdn Bhd — Remittance Beta — December 2025
• IME (M) Sdn Bhd — eKYC for RIA Money — November 2025
• Mobile Money International Sdn Bhd — Video KYC solution — October 2025
• Insureku Digital Sdn Bhd — InsureKU — April 2024
Eligibility and Readiness
Applicants must identify a genuine regulatory impediment under requirements administered by BNM and demonstrate a viable business plan, sufficient resources, basic risk management capabilities, and readiness for live testing. A completed proof of concept is not required at application, but applicants should be able to demonstrate a medium-fidelity, semi-functional prototype within three months. Purely conceptual or ideation-stage applicants are generally encouraged to develop their solutions further before applying. (bnm.gov.my)
Application Process
• Assess whether the solution falls within BNM’s regulatory scope
• Identify the relevant regulatory impediment
• Submit the appropriate Sandbox application and supporting documents
• Work with BNM to define testing parameters, safeguards, and performance indicators
• Conduct live testing, generally for up to 12 months
• Prepare for commercial deployment or an orderly exit after testing
Guiding Principles
• Parity: Similar activities presenting similar risks should generally face similar regulatory requirements.
• Proportionality: Requirements should reflect the complexity and risk profile of the activity.
• Neutrality: BNM does not favour specific technologies or methods.
• Case-by-case assessment: Testing conditions and regulatory flexibility are determined individually for each participant.
Resources
BNM provides several resources for prospective applicants, including:
• Sandbox Interest Questionnaire
• Standard Sandbox and Green Lane Application Forms
• Application Guidelines
• The Sandbox Playbook
• Regulatory Sandbox FAQs
• The Sandbox Story
• Understanding Regulations
• FAOM Sandbox Pre-Screening and Mentorship Programme
Establishment and Evolution
• October 2016: BNM introduced the Regulatory Sandbox Framework to support live testing of fintech solutions.
• 2016 onward: The Sandbox has supported innovations including eKYC, digital insurance, peer-to-peer family takaful, buy-now-pay-later, and digital remittance.
• February 2024: BNM launched an enhanced framework and introduced the Green Lane to provide a faster pathway for eligible financial institutions.
The Regulatory Sandbox provides a structured route for eligible financial innovations to be tested in Malaysia while helping BNM assess emerging technologies, business models, and regulatory risks. Participation does not represent BNM endorsement or guarantee future licensing or regulatory approval.