A regulatory sandbox is a controlled environment set up by regulatory authorities that allows organizations to test new technologies, products, or services under real-world conditions but with regulatory oversight. This enables innovators, especially in sectors like fintech and cybersecurity, to experiment without immediately facing the full set of legal or compliance requirements. The sandbox helps identify potential risks and benefits, ensuring that innovations can be safely refined before wider public release. It balances the need for innovation with the protection of consumers and the integrity of the market.