The establishment of a regulatory sandbox by Czech Authorities could foster innovation in the financial sector while allowing supervisors to observe and address emerging risks associated with the deployment of innovative technologies in finance with potential benefits extending to all stakeholders involved. Enhanced communication and interaction with FinTechs through constructive dialogue and customised guidance, clear guidance as to the license category corresponding to the innovative business model, and support in preparing a licensing application are some of the potential benefits for FinTechs who can make more informed decisions, develop tailored strategies, and ensure compliance with applicable regulations. Czech Authorities can enhance their understanding of how such innovative mechanisms may alter the risk profile of certain financial activities, and, in turn, facilitate the development of adequate policy responses, if required. Visible efforts to improve the dialogue between the supervisor and FinTechs can increase the confidence of investors about the viability of local FinTechs and the attractiveness of the domestic FinTech market and signal an openness towards safe innovation in finance, encouraging FinTech start-up activity.