What is an Innovation Sandbox and What Benefits Does it Offer to New Entrepreneurs?
A simple explanation to help you understand the role of a regulatory sandbox and how it will specifically work for Aleph, Ciudad de Crecimiento
What is an Innovation Sandbox?
A regulatory sandbox, also known as an "innovation sandbox" is an experimental environment where companies and entrepreneurs can test and develop new products, services, or technologies in a controlled manner, under the supervision and regulation of competent authorities.
What is the main goal? To promote innovation and economic growth by allowing companies and entrepreneurs to experiment and develop new ideas and technologies quickly and efficiently, without having to worry about regulation and potential legal and administrative obstacles.
How does an Innovation Sandbox work?
A regulatory sandbox typically works as follows:
Companies and entrepreneurs present their projects and proposals to competent authorities, which evaluate and select those with the most potential for innovation and growth.
}Selected projects receive special permission to work on their developments and test them during a specified period, which can range from months to years.
During this period, they have access to resources and support, such as consulting, financing, and networking with other ecosystem actors, to facilitate the development and improvement of their projects.
Competent authorities oversee and regulate the development of projects to ensure they meet applicable standards and regulations.
At the end of the period, companies present their results and evaluations, and competent authorities evaluate the impact and effectiveness of the projects.
The Sandbox Legislation in Buenos Aires
In Buenos Aires, it is Law 6491 that regulates the processes and methodologies for developing pilot projects of technological innovation and implementing controlled physical or virtual testing environments, which we know more informally as a "sandbox.”
The law allows for the development of a specific project (controlled, safe, and limited) in a controlled testing environment, physical and/or virtual. The Secretary of Innovation and Digital Transformation of CABA and an Ethics Committee are responsible for evaluating the submitted requests.
Aleph requested the creation of a sandbox in CABA as the first Pop-Up City in Argentina, becoming a national precedent for the use of innovative technologies that go beyond blockchain, with participants who can interact and connect with each other during a one-month event.
Startups, entrepreneurs, investors, and web3 enthusiasts will come together to develop projects thanks to the testing environment. Once approved, similar projects or those based on similar operations will anchor their efforts in the approved activities of the sandbox.
This is just the first and small step towards a greater purpose: giving startups stability by establishing a new regulatory framework for them.
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