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.
Currently 27 countries have approved regulatory sandboxes in their legal system. Asia accounts for the lion share’s of this kind of initiative, with 52% of the total. Six European countries already have initiatives of this type, highlighting those in the United Kingdom, Denmark and the Netherlands.