Japan’s Regulatory Sandbox

Secretariat of New Form of Capitalism Realization Headquarters
Cabinet Secretariat, Government of Japan

What is Regulatory Sandbox?
 Japan’s regulatory sandbox was temporarily established under the Act on Special Measuresfor Productivity Improvement in June 2018, and made permanent under the revised Act on
Strengthening Industrial Competitiveness in June 2021.
 It enables you to expeditiously demonstrate your cutting-edge technologies and businessmodels in any sector within the limited conditions conforming to the existing regulations.
 Information and data obtained from the demonstrations are utilized to promote smoothcommercialization and regulatory reform.
 Since the law went into effect, 30 projects have been approved in a wide range of sectors
such as fintech, mobility, AI/IoT, and healthcare.

 Japan’s Cabinet Secretariat serves as a single point of contact for applicants to findinformation and seek a prior consultation.

Process
Submission of Application
Committee for Evaluating the Effectiveness

Examples of Projects
Ex 1. Electric scooter sharing
Road Traffic Act was revised after a sandbox demonstration, whereparticipants rode on electric scooters without driver’s licenses onuniversity campuses (private roads), which is similar to public roads.

Notice of Approval

Ex 2. Blockchain technology
Demonstration
Deliberation for regulatory reform

Based on the special provisions for notification of assignment ofclaims developed through the sandbox demonstration, financial
institutions and fintech companies are able to conduct
demonstrations using blockchain technology.

1Regulatory Sandbox and Related Regulatory Reform Policy Tools
ApplicantCabinet Secretariat
consults andcoordinates withrelevant ministries
and supports
preparation ofapplication.

Regulatory Sandbox

Project basedRegulatory
ReformSystem to Remove Gray Zone
Areas

Cabinet Secretariat
Single Point ofContact
Cabinet Secretariat
allocates a proposal
to an appropriate
department of thepolicy tool.

Information and data obtained from thedemonstrations are utilized to promotesmooth commercialization, regulatory
reform, and other social implementation.

30 approved
projects**As of Jul. 2023

242 approved
projects**As of Jun. 2023

System of special arrangements
for corporate field tests*Business implementation with special regulatory
measures.

16 approved
projects**As of Jun. 2023

Region based
Regulatory
ReformNational StrategicSpecial Zones
Special Regional Sandbox
Applicable sectors are limited to autonomus driving ,unmanned aerial vehicles, and related radio wave usage.

Nationwide
Regulatory
ReformRegulatory Reform
Promotion Council2

Process under Regulatory Sandbox(single point of contact)

Applicant

1) Prior
consultation

Prime Minister*

GoJ'sRegulatory
Sandbox Team* As head of the Cabinet Office
Recommendation

Draft ofapplication

demonstration

3) Minister's viewon the application

2) Submission ofapplication
5) Notice ofapproval/non-approval6) Reporting

CompetentMinister(s)4) Reviews minister'sview

Appoints members

Committee forEvaluating theEffectiveness ofNew Technologies

Deliberation forregulatory
reform3

Criteria for Approval If a demonstration plan conforms to all of the following items, the plan will beapproved, after the review of the New Technologies Evaluation Committee.
１．the plan is appropriate in light of the review policy of thegovernment;
２．the demonstration is expected to be implemented smoothly andreliably;

３．the contents of the plan are not in violation of the relevant laws andregulations.

4Approved Projects
 Since 2018, 30 projects have been approved in a wide range of fields such as
fintech, mobility, blockchain, healthcare and AI/IoT/DX.

HealthcareFintech
・Fintech x Privacy Protection

・Insurtech（P2P Insurance）
・Small short term loan（P2P Insurance）

Mobility・Electric Schooter Sharing
・Switchable Electric Micro Bike・Online Medical Advices with Diagnostic Kit
・Digital Living Will with Biometric Identity
Authentication
・Real-time Blood Collection Test for Sports
・Pharmacy x Medical Supplies Vending
Machines
・Manual of POP Display about Vegetables
・Pharmacy x Disaster Countermeasure Medical Supply Vehicles

AI/IoT/DX

・Space Sharing of Camper Bus

・IoT x Home Appliances

Blockchain
・Blockchain x Crypto Exchanges
・Blockchain x Clinical Development
・Blockchain x Notice of Transfer of Claims

・DX x Real Estate Transactions
・DX x Notice of Transfer of Claims
・DX x Employment of People with Disabilities
・DX x Real Estate Transactions
・AI x Coffee Vending Machines
・DX x Prepaid Payment Instruments

Environment/Recycling
・IoT x Recycling
・Labelless Products x Vending Machines5