The Legislative Assembly passed a bill allowing the licensing of limited scope banks and increased use of financial technology (fintech) on Monday, the Macau Post Daily reports. The new law takes effect on 1 November, and will replace the current law regulating the city’s financial system – which is 30 years old.
The article defines limited scope banks as financial institutions that are only permitted to carry out a relatively narrow range of banking services.
In terms of fintech, the new law enables the government to issue temporary permits for trial operations of fintech projects to tech companies and academic or research institutions – in addition to financial institutions.
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This means that non-financial institutions will no longer need to obtain a financial licence to explore the possibilities of fintech, so long as they meet certain criteria. The temporary permits will be valid for up to a year and can be renewed twice.
The new law also simplifies procedures around the public issuance of bonds, and strengthens the government’s ability to combat illegal financial activity. For example, anyone receiving deposits or other repayable funds from the public without official authorisation could face between two and five years jail time.
