Alberta’s Bill 13, the Financial Innovation Act, could create a “safe space” for up-and-coming tech companies in the province looking to develop cryptocurrency and blockchain technology.
According to a news release, “If passed, Bill 13 will establish a regulatory sandbox for financial services and fintech companies. A regulatory sandbox is a “safe space” in which companies can test innovative products or services without immediately meeting all regulatory requirements. It also assists companies in collecting information on new products and services to determine if they have value for customers.”
If passed, this would make Alberta the first province to establish a regulatory sandbox for companies in fintech, creating a more than attractive environment for anyone looking to work on cutting-edge blockchain technology.
“This will be a strong incentive for fintech companies to move to Alberta and create jobs,” said Finance Minister Travis Toews.
“In turn, it will further help diversify our economy and add to our growing reputation as a hub for world-class financial services.”
In effect, the regulatory sandbox would allow companies to test technology without adhering to certain legal regulations and access Albertans’ data with strict supervision and with individuals’ consent.
By doing so, Alberta will be better positioned to compete with the US, UK, and Australia, all of whom already use regulatory sandboxes to develop new technology.
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The laws that companies would potentially be exempt from are the Loan and Trust Corporations Act, Credit Union Act, ATB Financial Act, Consumer Protection Act, Personal Information Protection Act, and Financial Consumers Act.
“Exemptions to the Personal Information Protection Act would also require approval from the Office of the Information and Privacy Commissioner. This ensures personal information would be protected. Exemptions would also require approval from the Minister of Service Alberta,” reads the news release.
According to Koleya Karringten, the Canadian Blockchain Consortium executive director, Alberta could become “an international blockchain hub” if this legislation passes.
“This legislation is a game-changer for companies in our province as entrepreneurs and innovators in the technology space,” Karringten says.
If passed, the Alberta government hopes to begin accepting sandbox applications by July 1.
