Commission reaffirms flexible approach to applications with Innovation Sandbox + Concierge

The Commission has reiterated its commitment to supporting innovation in financial services through the Innovation Sandbox + Concierge which was launched in October 2025 as part of the Digital Finance Initiative (DFI).

The Sandbox builds on the previous arrangements known as the Innovation Soundbox. It offers firms a structured environment in which to develop and launch innovative products and services. As part of the DFI, in December, we issued a consultation paper ‘Supporting Growth with Digital Finance’. The consultation paper sets out that the Sandbox is not intended to operate as a “one size fits all” model. Instead, requirements can be adjusted to encourage innovation and market development.

While the Sandbox remains available for new and innovative business including virtual asset service providers (VASPs), the Commission recognises that some firms may be better suited to proceed directly via standard licensing arrangements.

Reflecting this shift, the Commission no longer expects all new VASP licensees to follow the sandbox route. To support this more flexible approach, the Commission proposes removing the specific reference to the application process contained in guidance to rule 10.2 of the Lending Credit and Finance rules, as it is no longer necessary.

The refreshed sandbox offering provides an option for firms seeking to test or introduce new technologies, services and business models. Crucially, the Sandbox is open to firms now. Firms do not need to wait until the end of the current DFI consultation period or for any subsequent rule changes before approaching us.  The Commission has developed the Sandbox so as to be maintain the agility needed to accommodate emerging technologies and new market concepts, even while we consider changes to our framework.

Firms and interested parties are encouraged to engage with the DFI consultation and share their views. Industry insight is critical to shaping proportionate, forward‑looking regulation that maintains Guernsey’s competitiveness while supporting innovation. Visit: Survey Details | Supporting Growth with Digital Finance