Have you heard of “Regulatory Sandbox”?
The expression “Sandbox” is very popular in IT and is used when you want to test an application in a safe environment (such as a sandbox, where the metaphor of the term comes from), without the test damaging other applications or the system where they are inserted.
This term started to be used in the legal environment as “experimental spaces where innovative companies can operate temporarily, within certain rules that limit aspects such as the number of users or the period in which the product can be offered”.
Therefore, these companies can offer new products or services without the restrictions of the regulatory framework in force at that time.
The idea behind this model is to encourage innovation, reduce the ripening time to development and improve a product in the applicable regulatory framework, among others.
This model is here to stay, and as we know that innovation comes first and regulation later, the Sandbox allows a period of ripening so that businesses can prosper without the established regulation making the business unfeasible “from an early age”.
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