GlossaryAdvanced
Regulatory Sandbox
A supervised program letting companies test new financial products under relaxed regulatory conditions.
A regulatory sandbox is a supervised program, run by a government or regulatory body, that lets companies test new financial products (including crypto-related ones) under temporarily relaxed regulatory conditions, generally with closer oversight in exchange for that flexibility.
Several jurisdictions have run crypto-specific regulatory sandboxes as a way to study new products before deciding on permanent rules.
Examples
- A crypto startup might test a new product within a regulatory sandbox before full commercial launch.
- Regulatory sandboxes generally involve closer supervisory oversight in exchange for regulatory flexibility.