meta_id 3321218

On Monday, Spain's Ministry of Economic Affairs and Digital Transformation relaunched its Financial Sandbox, a controlled testing environment for innovative financial sector projects. Vice President and Minister of Economic Affairs, Trade and Enterprise Carlos Cuerpo presented the reform at an event titled "From Experience to Momentum" held at the Ministry, attended by supervisors including the Bank of Spain, the National Securities Market Commission (CNMV), and the General Directorate of Insurance and Pension Funds (DGSFP). Since its launch in 2021, the Sandbox has received 117 projects across ten cohorts, with more than 40 successfully tested in real conditions. Projects have spanned distributed ledger technology (blockchain), artificial intelligence, biometric identification, market transparency, and new trading and settlement systems. Several initiatives now operate successfully in the market. The reform aims to make the Sandbox more agile for innovators and more accessible to emerging companies while improving the broader financial system. The reform comprises two components. First, legislative updates included in the Draft Law on Digitalisation and Modernisation of the Financial Sector replace the current semi-annual cohort system with a permanent open window, allowing companies to submit projects at any time. Evaluation timelines are reduced by approximately two months—from 6.5 to 4.5 months from application submission to testing commencement. The reform simplifies access by reducing documentation requirements, allowing responsible declarations instead of formal proofs, and requiring financial guarantees only when essential. The definition of innovation expands beyond novel technologies to include business model innovation, process improvements, and novel applications of existing technologies. Thematic calls will enable focused attention on specific regulatory challenges. Second, direct support measures include a dedicated financing line from the Official Credit Institute (ICO) to facilitate Sandbox access, particularly benefiting startups and individual promoters. The Ministry will increase visibility through wider dissemination of project conclusion reports in collaboration with the Spanish Association of Fintech and Insurtech (AEFI) and periodic events.