Regulatory Sandboxes for Blockchain Innovation: A Global Perspective

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Blockchain technology is not a new name in the household of the technology and digital world. Been introduced years ago, it has been able to gained massive attention and still continue to gain massive attention beyond what we can ever imagine of. Blockchain technology who was able to gain massive evolution at a very rapid speed and been able to take the place of the lot of traditional systems that we are all aware of.

Coming after years of us been used to the traditional system, it has been able to changed a lot of things and even still changing a lot of things without not showing any sign of slowing down. For years, we have seen the traditional system having gaps but Blockchain technology coming to bridge the gap and that is making use of some solutions to bridge the gap which I will be talking about today.

Before I start, I will like to establish what it actually means when we talk about the regulatory sandboxes. Regulatory sandboxes as it were are actually referred to as Frameworks which are actually governments that works on bodies to make sure that the new technologies that we have right now thrive under the real world environment and even beyond. Well according to my research, it was first introduced as financial technology but after that, it gained massive attention and have adopted to become something magnificent over the years even to this particular point.

Key features of regulatory sandboxes include:

• Controlled Testing Environment: Regulatory Sandboxes have the ability to actually make use that participants operate making use of some standards and criteria to help avoid regulatory issues.

• Collaborative Approach: The second one is that Sandbox gives this collaborative approach that allows a lot of people such as investors, regulators and even much more interact together and without issues.

Even as the Blockchain technology is really important and offer a lot of opportunities, I will say there is still need for the Blockchain technology application in order for it to be able to thrive. Some of the Issues that I believe Regulatory Sandboxes always address are below;

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• Legal Ambiguity: This is the first and trust me, this is very important. Having the ability for the clarity helps regulators to have a deep study of the Blockchain applications and beyond for the permanent regulations.

• Consumer Protection: The second issue that Sandboxes address is the aspect of the Consumer protection making sure that user data is safe and secured.

• Risk Mitigation: Lastly, I will like to make mention that it helps to address Risk most especially risk that might want to lead to fraud or scams. It helps the system to quickly identify and address it.

Talking about the global impact and perspective concerning the Blockchain Regulatory Sandboxes, I will just be making mention of three global regions as case study.

• United Kingdom: Of course this will be my first. The FCA which stand for the Financial Conduct Authority have always helped to sustain the regulatory sandboxes and many more. Why it is creates is to help give support to Blockchain projects to enhance the Blockchain innovation.

• European Union: The EU over the years have also been trying to help promote the Blockchain Sandbox and they are doing that by allowing users form different members state of the European Union to give their own template and test as Pertaining to the Blockchain solutions. In fact this initiative have gone a long way to help promote massive Blockchain innovation in different part of the world.

• Africa: Lastly is the Africa. Africa like the Kenya, the south Africa and many more have been able to kickstart their own sandboxes to be able to come up with financial inclusion and many more. Africa now have been able to come up with applications that are Blockchain based and which are Decentralised identity based.

As I conclude, I will like to establish that the Regulatory Sandboxes have helped to give a very positive solution to a lot of challenges that the Blockchain space have been facing most especially in the aspect of the Blockchain regulations and many more. Blockchain will continue to thrive and succeed over the years as I am just so certain of that.