Regulatory Sandbox Expansion

Definition ∞ Regulatory sandbox expansion refers to the extension or broadening of an existing regulatory sandbox program, which provides a controlled testing environment for innovative financial products or services. This expansion might involve increasing the number of participating entities, incorporating new technological domains, or widening the scope of permissible activities. It signifies growing regulatory confidence.
Context ∞ Regulatory sandbox expansion is often perceived as a positive indicator for fintech and digital asset innovation, as it allows more firms to test novel solutions under supervisory guidance. News frequently highlights these expansions as evidence of a jurisdiction’s commitment to fostering responsible technological advancement in financial services, potentially attracting further investment and development.