A regulatory sandbox is a framework set up by a regulator (usually in sectors like finance, health, or technology) that allows innovators to test new products, services, or business models in a controlled and supervised environment, with relaxed regulatory requirements for a limited time and scope. ЁЯФН Key Features of a Regulatory Sandbox: Feature Description Testing environment Allows firms to test innovations in real-market conditions but with certain safeguards. Regulatory flexibility Some rules may be temporarily relaxed to promote innovation. Time-bound and monitored Operates for a limited period with regular reporting to the regulator. Supervision Close monitoring ensures consumer protection and systemic stability. Exit criteria Clear conditions are set for moving out of the sandbox (either to full market or shutdown). ЁЯзк Why Regulatory Sandboxes Matter: Encourage innovation in highly regulated sectors (e.g., fintech, health tech). Help regulators understand emerging technolo...
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