Regulatory sandboxes

The UAE operates multiple regulatory sandboxes, notably the ADGM RegLab and DIFC FinTech Hive, to foster innovation in financial services and emerging technologies. Their purpose is to provide a controlled environment for firms to test new products, services, and business models that leverage technologies like AI, blockchain, distributed ledger technology (DLT), and other FinTech innovations.

Use of AI and VR applications in labour market services, including VR-based job interviews and skills assessments for job seekers.

Australia's Enhanced Regulatory Sandbox (ERS), managed by ASIC, allows eligible businesses to test certain innovative financial services and credit activities without first obtaining a license or authorization. The purpose is to facilitate innovation in the financial sector by reducing regulatory barriers for new products and services. The scope includes a broad range of FinTech innovations, including those leveraging blockchain technology, and is increasingly relevant to the underlying infrastructure of digital economies and Virtual Worlds.

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.

Canada operates regulatory sandboxes primarily to foster innovation in the financial technology (FinTech) sector, including blockchain and digital assets. The purpose is to allow companies to test innovative products, services, and business models that might not fit neatly into existing regulations, under controlled conditions. While not explicitly a 'MetaVerse sandbox’, the framework is adaptable to emerging technologies like AI, and discussions are ongoing regarding its application to AR/VR and Virtual Worlds.

Creation of a smart commerce and interaction platform blending physical city functions with digital overlays—featuring city-wide app portals, digital vouchers, and virtual marketplaces.

Development of a platform for issuing and managing digital credentials and verifiable documents, including student portfolios. The purpose is to ensure authenticity and easy verification of documents, reducing fraud and streamlining administrative processes.

Development and testing of a platform for secure data sharing and traceability across supply chains using blockchain technology. The purpose is to enable companies to comply with increasing regulations (e.g., Ecodesign Directive, Digital Product Passports) by securely sharing sensitive data without exposing intellectual property.