2. Testing limits
2.1.
The AFSA defines conditions for activities of the FinTech Lab Participants by setting standardised limits on size of funds, types of Clients permitted for the purpose of Testing FinTech Activities, which are determined based on the maturity of the FinTech firm, riskiness and type of activities.
2.2.
The AFSA does not impose any limits on the number of Clients, size of funds, types of Clients for Developing FinTech Activities given that they are performed by the firms authorised in foreign jurisdiction/-s.
2.3.
The maximum size of funds (per Client/Investor) up to which the Client Money Accounts are permitted to be deposited and/or refilled is reflected in the Table 1:
A | B | C | D | |
# | Currency | Retail Clients and Investors: natural persons | Retail Clients and Investors: Body Corporates | Professional Clients and Accredited Investors |
1 | Fiat Currency | 1,000 (thousand) USD or equivalent | 20,000 (twenty thousand) USD or equivalent | within aggregated limits |
2 | Operating a Digital Asset Trading Facility or Providing Custody for safeguarding and administering Digital Assets belonging to another Person | 0.5 (point five) BTC or equivalent amount in another Digital Asset | 5 (five) BTC or equivalent amount in another Digital Asset | within aggregated limits |
3 | Any other Digital Asset related business | 0.25 (point twenty-five) BTC or equivalent amount in other Digital Asset | 2.5 (two point five) BTC or equivalent in other Digital Asset | within aggregated limits |
2.4
The maximum size of aggregated funds of Clients that a FinTech Lab Participant is permitted to hold without ensuring compensation arrangement (which can be, for instance, in the form of performance assurance or guarantee) at any given instance for the purpose of Testing the FinTech Activities is:
a) for Retail Clients and Investors:
- (i) 200,000 (two hundred thousand) USD or equivalent Fiat Currency; or
- (ii) 50 (fifty) BTC or equivalent Digital Asset.
b) for Professional Clients and Accredited Investors:
- (i) 5,000,000 (five million) USD or equivalent Fiat Currency; or
- (ii) 1,250 (one thousand and two hundred fifty) BTC or equivalent Digital Asset.
2.5.
If a FinTech Lab Participant has an adequate arrangement to compensate its Clients against losses or damages, the AFSA may consider increasing the values of maximum sizes of Retail Clients funds outlined in 2.3 and 2.4 above.
2.6.
The AFSA must be appointed as the trustee of a performance assurance or guarantee provided by a FinTech Lab Participant
2.7.
The AFSA Committee on Authorisation may, at any time, increase or reduce a limit under 2.3. and/or 2.4. for a particular FinTech Lab Participant, or a Person who is an applicant to become a FinTech Lab Participant, if satisfied that it is justified to do so
2.8
A FinTech Lab Participant may apply to the AFSA Committee on Authorisation for a limit applying to it under this 2.3. and/or 2.4. to be increased. Without limiting the grounds on which the participant may justify the application, the participant may justify the application on 1 or more of the following grounds:
i. successful performance of the authorised FinTech Activities during a period of 6 (six) months without any incident and with properly execution of the participant’s Testing/Developing plan;
ii. fulfillment of all requirements in relation to systems and controls and all legal and regulatory requirements;
iii. providing adequate arrangement to compensate its Clients against losses or damages in the case of default.