The sandbox is facilitated by a consortium under the lead of Bird & Bird with its consulting arm OXYGY, blockchain experts of Warren Brandeis, and the web designers of Spindox. The selection and award process will be overseen by a panel of independent academic experts from European universities.
The European Blockchain Regulatory Sandbox for innovative use cases involving Distributed Ledger Technologies (DLT) is an initiative of the European Commission. The sandbox establishes a pan-European framework for regulatory dialogues to increase legal certainty for innovative blockchain technology solutions.
Blockchain and other Distributed Ledger Technologies are innovative developments and are deployed across industry sectors such as energy & utilities, education, healthcare, mobility, finance & insurance, and logistics & supply chains.
The European Blockchain Sandbox has been set up and is being operated to facilitate the dialogue between regulators and innovators for private and public sector use cases. Legal advice and regulatory guidance will be provided in a safe and confidential environment. The dialogues will be held across industry sectors and geographic regions, which will help to identify and communicate best practices in the interest of the wider EU/EEA blockchain community. The sandbox is open to use cases based on any blockchain infrastructure.
The regulatory Sandbox aims to provide legal certainty through facilitating regulatory dialogue and cooperation between innovators and regulators at the national and the EU level. Blockchain companies participating in the Sandbox have the opportunity to demonstrate their innovative solutions and highlight their needs regarding regulatory guidance and legal certainty to regulators and supervisors in a safe and confidential environment. They will receive legal advice from legal experts and be part of a constructive dialogue with national and EU regulators. Also, they will be able to develop their regulatory understanding and extend their network and reputation through their participation in this pan-European project. No fee will be charged for the application and participation in the Sandbox but there will not be reimbursement of costs.
Starting in 2023, the sandbox will annually accept cohorts of 20 blockchain use cases. They will be matched with relevant national and EU regulators for a safe and constructive dialogue on the most relevant regulatory issues. Use cases will be selected on the basis of the maturity of the business case, legal/regulatory relevance and their contribution to the EU’s wider policy priorities. Every year, the most innovative regulator participating in the sandbox will be awarded a prize.
Warren Brandeis is the technical partner of the EU Blockchain Sandbox bringing into the consortium the required technical expertise around Decentralized Ledger Technologies (DLTs). The role of Warren Brandeis is twofold: firstly to lead a carefully curated selection process of the use cases that will participate in the regulatory sandbox and secondly to offer the necessary technical insights in the discussions between the use case owners and the regulators across various sectors ranging from energy and supply chains to digitial product passports and decentralized finance.