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Caught in quicksand? Compliance and legitimacy challenges in using regulatory sandboxes to manage emerging technologies

dc.contributor.authorJohnson, Walter
dc.date.accessioned2025-05-15T00:22:49Z
dc.date.available2025-05-15T00:22:49Z
dc.date.issued2022
dc.date.updated2023-11-26T07:16:28Z
dc.description.abstractRegulatory sandboxes have become the latest development in regulatory reform, starting first in financial regulation and now expanding to other sectors. While sandboxes offer notable potential benefits for managing emerging technologies, achieving desirable policy outcomes with this novel regulatory instrument also comes with technical and political challenges. This article offers a framework to characterize regulatory sandboxes in any sector, involving a blend of (1) approval regulation with broad-based standards, (2) restricted discretion by the regulator for specific norms, (3) process-oriented regulation, (4) an outcomes-orientation, and (5) structured regulator–regulatee information sharing or dialogue. Using this model, the article outlines issues in compliance and legitimacy, including in trust and accountability, responsive enforcement, the politics of participation, and post-sandbox oversight. The article concludes by calling for greater scrutiny when considering implementing a sandbox instrument, with attention to sector-specific concerns, and offering directions for empirical evaluation of regulatory sandboxes.
dc.description.sponsorshipThis work was supported by the Australian National University under the Australian Government Research Training Program Scholarship.
dc.format.mimetypeapplication/pdfen_AU
dc.identifier.issn1748-5991
dc.identifier.urihttps://hdl.handle.net/1885/733750377
dc.language.isoen_AUen_AU
dc.provenanceThis is an open access article under the terms of the Creative Commons Attribution-NonCommercial License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited and is not used for commercial purposes.
dc.publisherJohn Wiley & Sons Inc
dc.rights©2022 The authors
dc.rights.licenseCreative Commons Attribution licence
dc.rights.urihttps://creativecommons.org/licenses/by-nc/4.0/
dc.sourceRegulation and Governance
dc.subjectcompliance
dc.subjectemerging technologies
dc.subjectfintech
dc.subjectflexible regulation
dc.subjectregulatory sandbox
dc.titleCaught in quicksand? Compliance and legitimacy challenges in using regulatory sandboxes to manage emerging technologies
dc.typeJournal article
dcterms.accessRightsOpen Access
local.bibliographicCitation.issue3
local.bibliographicCitation.lastpage725
local.bibliographicCitation.startpage709
local.contributor.affiliationJohnson, Walter, College of Asia and the Pacific, ANU
local.contributor.authoruidJohnson, Walter, u7164635
local.description.notesImported from ARIES
local.identifier.absfor440799 - Policy and administration not elsewhere classified
local.identifier.absseo230204 - Public services policy advice and analysis
local.identifier.ariespublicationU5603422xPUB88
local.identifier.citationvolume2023
local.identifier.doi10.1111/rego.12487
local.publisher.urlhttps://onlinelibrary.wiley.com/
local.type.statusPublished Version
publicationvolume.volumeNumber17

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