Regulatory sandboxes reduce the legal cost and uncertainty of launching new fintech products to market.

#Fintech #RegTech

Sandbox entry raises a fintech's probability of securing capital by 50%—most strongly for small, early-stage firms facing high regulatory barriers. (BIS Working Paper 901)
Sandbox case officers help firms design tests and identify regulations, reducing reliance on external legal counsel and lowering compliance costs. (ESA Joint Report, 2018)