HOW THE REGULATORY SANDBOX WORKS: UZBEKISTAN AND INTERNATIONAL PRACTICE

Abstract

Regulatory sandboxes have become a crucial tool for fostering financial innovation while maintaining oversight. They provide controlled environments where fintech products, digital investment platforms, and crypto-assets can be tested in real market conditions under temporary regulatory relief. This article examines the sandbox concept through international models, particularly the United Kingdom and Singapore, and explores Uzbekistan’s emerging regulatory framework for digital finance and stablecoins. Key components of the sandbox process include strict participant eligibility criteria, defined trial periods, transaction and customer limits, temporary exemptions from certain rules, and continuous monitoring and guidance. Properly designed and implemented, sandboxes can foster innovation, attract investment, and strengthen the digital economy while ensuring financial stability and investor protection