The Central Bank of Iran (CBI) has decided to launch a new fintech regulatory body, according to CBI official, as reported by Financial Tribune.

“CBI has been working on fintech regulations since last year. We are planning to develop an ecosystem to authorize the operation of financial startups and fintech firms,” Ali Kermanshah, director of CBI’s Office for Innovative Technologies, said in a website close to the central bank.

He also added that a heavy project is underway at CBI that would offer a safe and healthy environment to lower the risks for fintech startups and innovators. He noted that the central bank is facing problems for regulating fintechs and the key challenges of the bank lie in redefining regulations to make them more efficient and launching a new body to watch innovative firms’ operations.

“Banking regulations in Iran are inefficient and restrictive. Our regulations should encourage innovation in the sector,” he added.

Kermanshah said the current regulations could be used for authorizing fintech operations in the country. The recent move has raised hopes among experts and innovators, as lack of proper supervision has been posing major challenges for the operation of fintechs in Iran.