Cabinet-Level Regulatory Sandbox for AR/VR

Application, scope & purpose

Japan's Cabinet-Level Regulatory Sandbox, established in June 2018, is a cross-sectoral initiative designed to test cutting-edge technologies and innovative business models that may not fit within existing regulatory frameworks. Its primary purpose is to enable live testing of new technologies, including AR/VR applications, across diverse industries such as healthcare, mobility, and digital services. The sandbox aims to facilitate regulatory reforms based on real-world data and accelerate the implementation of new technologies into society.

MV/VW environment

The sandbox supports a wide range of AR/VR applications. While specific projects are diverse, they include immersive technologies for medical training, remote assistance, entertainment, and various digital services.

The environment is not a single MetaVerse platform but rather a framework that accommodates various AR/VR solutions developed by companies, allowing them to operate under temporary regulatory relief. The focus is on practical applications that can contribute to Japan's economic growth and societal well-being.

Role of sandbox

The Japanese Regulatory Sandbox provides temporary regulatory relief, allowing businesses to conduct demonstrations and live testing of their innovations under controlled conditions. The Cabinet Secretariat acts as a single point of contact, offering advice, consulting services, and hands-on support to applicants. Competent ministries provide oversight during the testing phase.

This framework enables iterative development and facilitates regulatory reform by providing concrete data and insights from real-world trials. The sandbox was initially temporary but was made permanent under the revised Act on Strengthening Industrial Competitiveness in June 2021, signifying its crucial role in Japan's innovation strategy.

Results obtained

  • Over 30 projects approved across diverse sectors including healthcare, mobility, and digital services.
  • Multiple regulatory reforms implemented based on sandbox learnings.
  • Permanent framework established under revised Act on Strengthening Industrial Competitiveness in June 2021.
  • Cross-ministerial coordination for complex technology testing.
  • The sandbox has proven effective in fostering innovation and driving regulatory reform reform based on real-world data.