Following overwhelming support in the Ohio General Assembly, Governor Mike DeWine recently signed into law legislation creating a “regulatory sandbox” for financial technology. Regulatory sandboxes, which are taking shape in a number of states, allow businesses to temporarily experiment with new products and services under the watch of expert regulators without incurring the usual cost of complying with red tape.
Sandboxes can provide regulatory relief for one or more industries. This one focuses solely on financial technology, or “fintech” — something with a lot to offer Ohio families and entrepreneurs. However, other states’ experiences reveal that the work is just beginning.
Ohio has been at risk of losing promising fintech companies to other states with more innovative regulatory codes. Cincinnati alone boasts 51 fintech startups, some of which may help connect the more than 36,000 unbanked households in the metro area.
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