A legislative proposal in Spain is seeking to set up a regulatory sandbox.

This is intended to facilitate the testing of innovative propositions in the market under a controlled environment.  The proposal also intends to enable participants who have undergone the sandbox process, to commence the regulated activity through a simplified licensing process, provided certain requirements are met.

The UK already operates a regulatory sandbox. One of its aims is to enhance competition in the interests of consumers and has filled a gap in the market.

It will be interesting to follow the development of these schemes and consider their future potential.