On regulatory sandbox participation for new fintech?

The 'exit strategy' often involves a phased transition with agreed-upon milestones for full compliance, but the real pitfall for smaller entities is the resource drain just to participate, let alone navigate the post-sandbox phase.

That's a good point about the exit strategy. I've always wondered if the 'light touch' regulation during the sandbox phase sometimes makes the transition to full compliance even more of a shock for smaller teams, especially if they haven't adequately planned for the resource drain.

The exit strategy is often the trickiest part, and many smaller fintechs underestimate the resources needed to transition from the sandbox to full compliance. It's not just about meeting the rules; it's about having the infrastructure and personnel to maintain that compliance ongoing.

The exit strategy is often the least clear part, with many firms finding themselves navigating a similar compliance burden upon graduation, just with slightly more goodwill from the regulator. The biggest pitfall for smaller entities seems to be underestimating the resource drain required to participate effectively, even in a sandbox.