The European Commission’s blockchain regulatory sandbox officially welcomes its first group of 20 ventures, poised to gain specialized regulatory guidance and legal advice.

Europe’s innovative platform for blockchain regulation marked its operational beginning on July 3, revealing the first array of blockchain applications, after sorting through a significant response of around 90 applications submitted in April. The sandbox’s original proposal in 2020 aimed to harmonize the regulatory climate for blockchain companies across European countries.

Twenty diverse projects have earned their spot in the initial cohort, as confirmed by the European Commission. These ventures cover a broad spectrum of sectors like information technology, telecoms, global trade, transportation, and financial markets.

The selected projects are situated across five strategic regions of Europe, with Western Europe housing 14 use cases, Southern Europe hosting 10, while the Nordics and Central Europe each accommodate eight, and Eastern Europe presents seven unique initiatives.

The establishment of a blockchain regulatory sandbox was first proposed in 2020 by the European Commission and the European Blockchain Partnership. The intent is to encourage an open dialogue between various stakeholders – regulators, public authorities, and cryptocurrency entities.

This innovative platform gives the opportunity for developers to present their business cases and receive customized legal counsel and regulatory guidance.

Assisting in this initiative is the UK-based law firm, Bird & Bird. Their role is to create a harmonious connection between developers and regulatory bodies, providing much-needed legal and regulatory guidance.

The sandbox is designed to help regulators deepen their understanding of advanced DLT (Distributed Ledger Technology). The knowledge gained through this process will be mutually exchanged among different regulatory bodies, enabling the Commission to gather valuable insights and define effective strategies.

The blockchain regulatory sandbox will align its operations with other relevant frameworks, such as the EU Digital Finance Platform and the soon-to-be-established AI Sandboxes under the AI Act. The Commission highlights this integration as essential due to the growing intersection of innovative technologies often spanning multiple industry sectors.

For the first batch of proposals, which ended on April 14, blockchain projects exhibiting a viable proof-of-concept and incorporating cross-border elements were invited. The plan is to sustain the selection process for new entrants yearly until 2026.