For any questions relating to the applications process, please email (info@blockchain-sandbox.eu). The answers will be published below for all applicants to benefit from.

The potential applicant is a company based outside the EEA with EEA-based subsidiaries, currently deploying blockchain solutions in the EEA. Is it possible for companies based outside the EEA with subsidiaries in the EEA to submit an eligible application for the European Blockchain Sandbox through an EEA-based subsidiary or via the parent company outside the EU/EEA?

The applicant must be established in the EEA and have been a legal person for at least six (6) months (by the deadline for the submission of an application specified on the website) either as: i) a legal entity registered in the professional or commercial register according for companies or non-profit organizations (other than public bodies)  according to the rules of the EEA Member State where it is established, or ii) a public body established in one of the EEA Member States. If  If an application is submitted on behalf of a consortium, then the applicant will make sure to have the permission to submit the application on the behalf of all parties. All consortium parties must be either legal persons or public bodies. The leader of the Blockchain use case could be the applicant or one of the other consortium partners, as long as the leader is a legal entity that is located in the EEA.

Therefore, non-EEA based companies can be part of a consortium that submits an application as long as the applicant (and the use case leader if applicable) are located in the EEA and fulfill the above conditions.

What is the maximum size limit of the application form and the annexes?

10MB.

Who has to sign the self-declaration on honour and the application form?

The application form must be signed submitted by a person authorized to enter into legally binding commitments on behalf of the applicant (and its consortium members if applicable). If the application is submitted on behalf of a consortium, then the applicant will make sure to have the permission to submit the application on behalf of all consortium members.

A self-declaration on honour has to be submitted by the applicant together with the application in accordance with the prescribed form which is accessible through the application form and on the website. If the application is submitted as a consortium, a self-declaration on honour, unconditionally completed and signed by an authorized representative, should be submitted for each consortium member.

Is the contact person mentioned in the application form the only person who can take part in the sandbox activities?

The contact person mentioned in A.6 of the application form is the appointed contact for communication regarding the application process and the sandbox if selected. However, during the sandbox operation more persons can take part in the sandbox activities (in principle up to five seven (57) persons per participant (the applicant, its consortium partners and participating regulators/authorities).

Is it possible to submit an application for more than one use-case for instance if the application is submitted on behalf of a consortium with individual consortium members deploying their use-case?

Each applicant will be allowed to submit one application for a specific use case. The application form needs to be completed for this use case and the eligibility of the application will be assessed on the basis thereof. Reference is made to the information requested in part B of the application form. However, the contributions by consortium partners - which could consist of experience with similar use cases - may be taken into account for the evaluation of the use case on the basis of the award criteria such as the reference with the EU's wider Policy Priorities. Reference is made to question A.11 of the application form.

How will business confidential information in the blockchain use case that is shared as part of the application process or in the course of the operation of the sandbox be protected?

All business confidential information, contained in the applications and in the course of the operation of the sandbox will be kept confidential in accordance with Clause 10 of the Application Terms and clause 12 of the Sandbox protocol. The application forms, selection process outcomes and other associated data will be destroyed after the end of the Sandbox operations of each cohort; wait-listed applications that participate in the next cohort will be retained until the end of the Sandbox operations for the next cohort (Clause 8 of the Application Terms).

 Information that is shared during the Sandbox operation will be kept confidential in accordance with clause 12 of the Sandbox protocol. This information will be no longer accessible at the end of the Sandbox operations of that cohort and all data on the secure platform will be archived offline in accordance with the bar rules at the end of the sandbox operations of that cohort (Clause 14 of the Sandbox protocol). Confidential information will not be published and will not be disclosed in the best practices report (Clause 10 of the Sandbox protocol and paragraph 5 of the Annex to the Sandbox protocol).

Is it correct to assume that the applicant will not be bound to consent to the use of confidential information, trade secrets and IP rights that is shared in the application form or during the sandbox operations by other parties (including the consortium, the European Commission and the participating regulators)?

Yes this is correct. However, on the basis of Clause 9 of the Application Terms and Clause 11 of the Sandbox protocol, the applicant will not object to further use of information that is not identified as business confidential by the participants in the sandbox (Clause 12 of the Sandbox protocol) and that is published in accordance with the Application Terms and the Sandbox protocol (see the answer to question 6, Clause 10 Application Terms and Clause 10 Sandbox protocol).

If the application is submitted as a consortium, is there a requirement that the consortium should be structured as a legal entity?

No this is not a requirement. If an application is submitted on behalf of a consortium, then the applicant will make sure to have the permission to submit the application on the behalf of all parties. However, the consortium does not need to be structured as a legal entity. All consortium parties must be either legal persons (companies or non-profit organisations) or public bodies. The leader of the Blockchain use case could be the applicant or one of the other consortium partners, as long as the leader is a legal entity that is located in the EEA. 

If the application is submitted as a consortium, must there be a legal representative of this consortium?

The application form must be submitted by a person authorized to enter into legally binding commitments on behalf of the applicant and its consortium members using the application form which is hosted on EUSurvey (hyperlink to Application Form). If the application is submitted on behalf of a consortium, then the applicant will make sure to have the permission to submit the application on behalf of all consortium members.

A self-declaration on honour has to be submitted by the applicant together with the application in accordance with the prescribed form which is accessible through the application form and on the website. If the application is submitted as a consortium, a self-declaration on honour, unconditionally completed and signed by an authorized representative, should be submitted for each consortium member.

How long will the selection process last?

It is expected that the selection process should be completed within three months following the application deadline.

Could you please explain how the automatic qualification to participate, of European Blockchain Services Infrastructure (EBSI) use cases, works in practice?

Up to 20 private and public sector use cases can participate in the Sandbox. There are separate lots for i) microenterprises, ii) small enterprises, iii) medium-sized or larger enterprises and iv) public bodies. Non-profit organizations (other than public bodies) can participate in the enterprise lots. The qualification of the enterprises/non-profit organizations (other than public bodies) depends on staff headcount and turnover or balance sheet based on EU Commission recommendation 2003/361. Determining whether an entity qualifies as a public body will be determined in accordance with the EU Commission’s ‘Rules for Legal Entity Validation, LEAR Appointment and Financial Capacity Assessment’ Version 4.0. At least 5 use cases from each category that meet the eligibility test will participate in the Sandbox if sufficient candidates are in the final shortlist. EBSI use cases that are proposed by the European Blockchain Partnership (EBP) are automatically qualified to participate in the sandbox if they apply before the end of the application term and fall within the category of public bodies (Clause 4.2 Application Terms).  

The questions in section E (E.1-E.8) refer to the link to novel regulatory issues across industry sectors. In question E.5, does the explanation need to cover all 1-3 applications selected in question E.1?

In question E.5 a short explanation regarding each of the innovative applications of the blockchain use case selected in questions E.1-E.4 can be given and, if applicable, the effects/advantages of the blockchain use case compared to traditional options/solutions can be described. It is also possible to refer to attachments uploaded under question D.7.

To what extent is the geographic element considered in the selection criteria? Does it only feature as "Geographic Uniqueness", and thus as tiebreaker? 

To what extent is the geographic element considered in the selection criteria? Does it only feature as "Geographic Uniqueness", and thus as tiebreaker?

The geographic element is also part of the eligibility criteria (Questions A.7 – A.9 and Questions A.17 – A.19). In addition, information about the geographic element could be given, if applicable, in for instance Parts E (link with novel regulatory issues across industry sectors) and F (Relevance with the EU’s wider Policy Priorities).

In the event of a tiebreaker between two or more use-cases, how do the tiebreaker criteria work?

There are three tie-breakers: “Geographical uniqueness”, “Regulator support” and “Technical novelty”, each with their own test. 

Geographical uniqueness (Part G application form) is applied as a tie-breaker if a use case has a score that qualifies for selection and comes from one of the EEA regions that is underrepresented or not represented at all in the final shortlist of candidates. In that case the selection team, at its discretion, may select a use case from such a region that meets the eligibility criteria.

The existence of regulator support (part H application form) is applied as a tie-breaker if use cases (within a lot) that are short-listed have similar scores that qualify for selection. A similar score is a score with 1 point or less difference, out of a total of 100 points (explanatory note in H.1 of the application form).

Technical novelty (Part I application form) is applied as an additional tie-breaker if use cases (within a lot) that are short-listed have similar scores that qualify for selection which cannot be solved on the basis of the Regulator support tie-breaker.

Is it necessary for the blockchain/DLT use case to already have achieved applicable regulatory approval to be considered eligible to apply for the European Blockchain Sandbox?

This is not a requirement if the use case meets the eligibility criterion of a validated proof of concept.

What is the desired level of technical terminology (and use of acronyms) in the description of the use-case?

Although the selection team consists of blockchain experts it is recommended to keep the language as simple and clear as possible and understandable for the purpose of a regulatory sandbox.

How should one assess the TRL (Technology Readiness Level) of a blockchain/DLT use case?

The use case for which the application is submitted needs to meet the eligibility test of a validated proof of concept (at least TRL level 5 - question B.5). Further information about TRL’s is given in questions B.5 and D.2 of the application form.

Information about additional use cases applications in various TRL’s can be given as additional context/clarification in Part B of the application form. 

How should a Decentralized Autonomous Organization (DAO) that has no legal entity apply?

A DAO that has no legal entity could participate as a consortium if one of the consortium partners acts as the applicant. The applicant should make sure to have the permission to submit the application on the behalf of all consortium parties. However, the consortium does not need to be structured as a legal entity. All consortium parties must be either legal persons or public bodies. The leader of the Blockchain use case could be the applicant or one of the other consortium partners, as long as the leader is a legal entity that is located in the EEA.

The applicant (and the use case leader as described in the application form if applicable) must be established in the EEA and must (by the deadline for the submission of an application specified on the website) have been a legal person for at least six (6) months either as: i) a legal entity registered in the professional or commercial register for companies or non-profit organizations (other than public bodies) according to the rules of the EEA Member State where it is established, or ii) a public body established in one of the EEA Member States which will be determined in accordance with the EU Commission’s ‘Rules for Legal Entity Validation, LEAR Appointment and Financial Capacity Assessment’ Version 4.0. 

Is there any bias to a certain type of blockchain in the selection procedure?

No, there is no bias and any type of blockchain use case or its related infrastructure or services can apply and be selected. (Link to selection criteria)

Are use cases operating globally eligible to apply for the Sandbox?

The applicant must be established in the EEA and (by the deadline for the submission of an application specified on the website) have been a legal person for at least six (6) months either as: i) a legal entity registered in the professional or commercial register for companies or non-profit organizations (other than public bodies) (including non-profit organizations) according to the rules of the EEA Member State where it is established, or ii) a public body established in one of the EEA Member States which will be determined in accordance with the EU Commission’s ‘Rules for Legal Entity Validation, LEAR Appointment and Financial Capacity Assessment’ Version 4.0. Moreover, the use case must be operated in the EEA but the fact that the use case could also operate outside the EEA is not a ground for exclusion. EEA-based companies can operate in a consortium with non-EEA companies provided that the beneficiary project in the Sandbox is under the lead of an EEA-based company. All participants in the sandbox must be based in the EEA.

Would it be an option to register an association to legally represent the DAO?

An association could act as the applicant if the relevant eligibility requirements are fulfilled. This includes that the applicant (and the use case leader if applicable) must be established in the EEA and must (by the deadline for the submission of an application specified on the website) have been a legal person for at least six (6) months either as: i) a legal entity registered in the professional or commercial register for companies or non-profit organizations (other than public bodies) according to the rules of the EEA Member State where it is established, or ii) a public body established in one of the EEA Member States which will be determined in accordance with the EU Commission’s ‘Rules for Legal Entity Validation, LEAR Appointment and Financial Capacity Assessment’ Version 4.0. Therefore, a newly registered association / legal entity would not meet the eligibility requirements. 

Is support from a regulator necessary to be eligible or is it rather a benefit, such as a tie-breaker?

Regulator support is not an eligibility requirement. The existence of regulator support (part H application form) is applied as a tie-breaker if use cases (within a lot) that are short-listed have similar scores that qualify for selection. A similar score is a score with 1 point or less difference, out of a total of 100 points (explanatory note in H.1 of the application form). A template regulator support letter that can be used is made available through the application form.

Do all use-cases need to use the European Blockchain Services Infrastructure (EBSI)?

No, the sandbox is not limited to a specific blockchain infrastructure. EBSI use cases that are proposed by the European Blockchain Partnership (EBP) are automatically qualified to participate in the sandbox if they submit an application before the end of the application term and fall within the category of public bodies (Clause 4.2 Application Terms). Reference is made to the question  “Could you please explain how the automatic qualification to participate, of European Blockchain Services Infrastructure (EBSI) use cases, works in practice?” above. However, applications for EBSI use cases that are not proposed by the EBP are governed by the normal application process.

Can an entity be involved in several applications (as a member of separate consortiums)?

Each applicant will only be allowed to submit one application for this first round of applications. If more than one application is submitted by an applicant, only the latest application will be taken into account (clause 2 of the application terms).

There is not a similar rule in the application terms for consortium members. Therefore a consortium member can participate in more than one application as long as the applicants for such consortia are different.

Is the sandbox fit for RegTech solutions addressing crypto specific regulations?

The sandbox is open for a broad range of blockchain use cases in the public and the private sector that meet the eligibility test (including a validated proof of concept) with an emphasis on topics that are of relevance across sectors and regions where novel legal and regulatory questions arise. A wide range of complex regulatory questions could be covered in the sandbox including crypto specific regulations.

Should each consortium include at least one public institution?

No, this is not mandatory. Up to 20 private and public sector use cases can participate in the Sandbox. There are separate lots for i) microenterprises, ii) small enterprises, iii) medium-sized or larger enterprises and iv) public bodies. Non-profit organizations (other than public bodies) can participate in the enterprise lots. The information with respect to the applicant determines the lot-category. Public bodies can participate in consortia falling within the first 3 categories as long as they are not the applicant.

How do you define a validated proof of concept? 

A validated proof-of-concept means that the DLT use case has been validated in a relevant environment. This should be determined in the context of EU-funded projects and specifically projects funded under the Horizon 2020 and Horizon Europe framework programs (the so-called TRL-levels). See the explanations provided in question B.5 and D of the application form.

Normally speaking the validated proof of concept test will be met if a solution is already implemented at clients of the applicant, but evidence needs to be provided which will be evaluated by the Selection Team under supervision of the Panel of Experts.

Is the use case owner able to submit different use cases in one application if a single use case has multiple applications?

Each applicant can only submit an application for a specific use case. The application form needs to be completed for this use case and the eligibility of the application will be assessed on the basis thereof. Reference is made to the information requested in part B of the application form. However, the contributions by consortium partners - which could consist of experience with similar use cases - may be taken into account for the evaluation of the use case on the basis of the award criteria such as the reference with the EU's wider Policy Priorities. Reference is made to question A.11 of the application form.

One of the questions in the application form is whether the applicant has the support of one or more regulators. What does “support” means in practice for a regulator?

‘Support’ by a regulator (including authorities) to a use case means that the regulator is interested in participating in the European Blockchain Sandbox together with the use case owner and likely in a cross border setting with one or more other national and/or European regulators. The support of a regulator will be indicated in the innovator’s application, including a support letter. A template regulator support letter is made available through the application form which may include specific regulatory topics which are of particular interest in relation to the use case but this is optional.

The regulator support will be taken into account in the evaluation of use cases as a tie-breaker if use cases that are short-listed have similar scores that qualify for selection. Regulator support does not mean that the regulator will be automatically involved in the regulatory dialogue on the specific use case, would it be selected, as the matching of use cases and regulators will have to take cross-sectorial and horizontal regulatory aspects into account.

 If I cannot fill-out all the information in the application at once, is there a way to save my progress?

The application is hosted on EUSurvey and has enabled the "Save as Draft" feature. When the applicant clicks on the "Save as Draft" function, they will save their progress, and immediately see a link which they can use to continue filling out their application from the point of last save. The applicant can also request EUSurvey to send the link to an e-mail address to be specified by the applicant.

Is it required for proofs (extract from the commercial register or other proofs) to be submitted in English-language or can they be submitted in the original language?

The extract from the commercial register or other proof of existence/legal personality can be submitted in the original language. However, the application itself needs to be submitted in the English language. This also applies to the other annexes. If applicable a simple English translation of the annexes is sufficient (no need to submit certified translations with the application). Before the final selection is made a final eligibility check will be performed and documentary evidence may be requested as set out in the introduction to the application form.

Are the same eligibility criteria, related to being a legal person for six months, demanded from all consortium members or only from the use case leader?

The applicant (and the use case leader as described in the application form if applicable) must (by the deadline for the submission of an application specified on the website) have been a legal person for at least six (6) months either as: i) a legal entity registered in the professional or commercial register for companies or non-profit organizations (other than public bodies) according to the rules of the EEA Member State where it is established, or ii) a public body established in one of the EEA Member States which will be determined in accordance with the EU Commission’s ‘Rules for Legal Entity Validation, LEAR Appointment and Financial Capacity Assessment’ Version 4.0. All other consortium members must be either legal entities or public bodies but the requirement that they must have been a legal person for at least six (6) months does not apply to these other consortium members.

Can the content in the application form be marked as confidential if the applicant sees it as needed?

All business confidential information, contained in the applications and in the course of the operation of the sandbox will be kept confidential in accordance with Clause 10 of the Application Terms and clause 12 of the Sandbox protocol. Reference is made to the question regarding business confidential information above (“How will business confidential information in the blockchain use case that is shared as part of the application process or in the course of the operation of the sandbox be protected?

”).

In accordance with Clause 10.1 of the Application Terms the applicant endeavours to minimize the involuntary or voluntary disclosure of business confidential information when completing the application process. If submission of business confidential information cannot be avoided, the applicant must clearly identify which information out of the information provided is considered to be confidential. This can for instance be done by clarifying in the application form that information between square brackets in red print should be considered as confidential information.

Example: [CONFIDENTIAL: red print]. However information can also be identified as confidential in other ways as long as this happens in a clear way.

If the applicant or a consortium partner is an association or a foundation, do all members of the association or foundation need to submit a Declaration on Honour?

If the applicant or a consortium partner is an association or a foundation, it is not needed to submit a Declaration on Honour for every individual member. Contributions of individual members can be taken into account for the evaluation of the use case if such individual members are named as consortium partners in the application form.  A self-declaration on honour should be submitted for each consortium member (see question above: ‘Who has to sign the self-declaration on honour and the application form”).

Will the costs of applying for the European Blockchain Sandbox be reimbursed by the European Commission?

The participation in the Sandbox is free of charge for the applicants but there will be no reimbursement of costs of participation.

Is it possible to form a consortium with relevant partners now to apply or should this consortium/collaboration have existed at least 6 months?

A consortium can be formed for the purposes of joining the European Blockchain Sandbox. The consortium does not need to be structured as a legal entity but all consortium parties must be either legal persons (companies or non-profit organisations) or public bodies. Therefore, the consortium can be created right before the application is submitted by the applicant.

The applicant must be established in the EEA and have been a legal person for at least six (6) months (by the deadline for the submission of an application specified on the website) either as: i) a legal entity registered in the professional or commercial register for companies or non-profit organizations (other than public bodies)  according to the rules of the EEA Member State where it is established, or ii) a public body established in one of the EEA Member States. If an application is submitted on behalf of a consortium, then the applicant will make sure to have the permission to submit the application on the behalf of all parties. All consortium parties must be either legal persons or public bodies. The leader of the Blockchain use case could be the applicant or one of the other consortium partners, as long as the leader is a legal entity that is located in the EEA.

Do the 1st cohort participants have influence on the selection of the 2nd cohort?

No, the selection process for each of the three cohorts are mutually exclusive. In each round of selection, the applications submitted are scrutinised by our Selection Team on the basis of the Selection Criteria

Is it possible for a selected applicant in the 1st cohort to apply again for the 2nd cohort.

A 1^st cohort selected applicant can submit an application for the 2nd cohort for a different use case in which case the application for the 2^nd cohort including the characteristics of the use case for the 2^nd cohort will be taken into account for the selection process. An application for the same 1^st cohort use case is expected to score low against the criterion of novel legal/regulatory topics.

Does the consortium need to exist for at least 6 months as well? 

No this is not a requirement. The consortium does not need to be structured as a legal entity and the cooperation in the consortium does not need to exist for at least six months.

Consortium partners will only be taken into account for the selection if they are a legal entity, but the minimum term of 6 months of existence on 25 March 2024 does not apply for individual consortium partners (meaning that for the individual consortium partners the requirement that they need to be in existence for at least 6 months on 25 March 2024 does not apply, unless they are the applicant or the use case leader (Clause 2.1 of the Application Terms)).

We are working with several regulators. do we need signatures from all parties involved? 

No, signatures from regulators are not required. A support letter from a regulator who is prepared to join the sandbox dialogue for the use case of the applicant is optional (a template support letter is provided through the link in the application form).

A regulator support letter that is submitted as part of the application (part H application form) is applied as a tie-breaker if use cases (within a lot) that are short-listed have similar scores that qualify for selection. A similar score is a score with 1 point or less difference, out of a total of 100 points (explanatory note in H.1 of the application form).

It is possible to submit more than one regulator support letter for a use case, but this will not make a difference for the application of the regulator support tie-breaker.

Is there a minimum size for a consortium? Can it be one EEA company and one Non-EEA company? 

There is no minimum size, this is allowed, as long as the applicant (and the use case leader if applicable) are located in the EEA and fulfill the minimum requirements such as being a legal entity in existence for at least 6 months on 25 March 2024 is in the EEA.

The model for the self-declaration on honour (Question A.9 of the application form) requests to provide the “statutory registration number”. Could we also provide the VAT number?

Yes, but in this case please clarify in the form that the VAT number is provided.

How should the intellectual property and confidentiality clauses in the Application Terms (Clause 9.1) and the Sandbox Protocol (Clause 11.1) with a reference to the European Commission’s Model service contract (Clause II.13) be read in relation to pre-existing intellectual property rights of the applicant?

The applicant is not bound to consent to the use by other parties (including the consortium, the European Commission and the participating regulators) of any confidential information, trade secrets and IP rights that are shared in the application form or during the Sandbox operations nor is the applicant bound to provide a license in relation to such information.

However, on the basis of Clause 9 of the Application Terms and Clause 11 of the Sandbox protocol in conjunction with Clause II.13 of the Model service contract, selected applicants will not object to communication in relation to the Sandbox in accordance with Clause 10.2 Application Terms and Clause 10.1/10.2 Sandbox Protocol, including the publication of the results of the Sandbox for all selected Blockchain/DLT use cases in best practices  reports  that  will  be  made  public  without  referring  to  the  testing  of  specific Blockchain use cases and without disclosing confidential information (Clause 2.2 of the Sandbox Protocol in conjunction with Clause 12 of the Sandbox Protocol). The best practices reports will identify general regulatory and legal issues and solutions as well as improvements of the sandbox experience with a focus of sharing insights and lessons learned across sectors.

Are the requirements referred to in part A of the application form relating to the declaration of honour and the extract of the commercial register only applicable for smaller companies?

No, the requirements referred to in part A of the application form are required for all applicants (eligibility criteria).

Is our understanding correct that the reference to Sec. II.13 of the Model Service Contract in the Application Terms and the Sandbox Protocol does not mean that the applicants/selected use cases (have to) transfer or license any of their IPR?

Yes, this is correct. The reference in the Application Term and the Sandbox Protocol to Sec. II.13 of the Model Service Contract does not apply to the applicants and the selected use case owners.  As an exception, the reference applies to selected applicants who have agreed as part of their application not to object to communication in relation to the Sandbox in accordance with Clause 10.2 Application Terms and Clause 10.1/10.2 Sandbox Protocol, including the publication of the results of the Sandbox for all selected Blockchain/DLT use cases in best practices  reports  that  will  be  made  public  without  referring  to  the  testing  of  specific Blockchain use cases and without disclosing confidential information (Clause 2.2 of the Sandbox Protocol in conjunction with Clause 12 of the Sandbox Protocol). The best practices reports will identify general regulatory and legal issues and solutions as well as improvements of the sandbox experience with a focus of sharing insights and lessons learned across sectorsInformation that is contributed by the regulators is governed by the same confidentiality rules as information that is contributed by the use cases participating in the sandbox. Information exchanged in the Sandbox is only be accessible to the individual persons who participate in the Sandbox on behalf of the use case owners and the regulators and this information may not be copied or disseminated outside this group unless otherwise permitted under the Sandbox protocol. Bird & Bird will participate in the Sandbox on an as needed basis and Bird & Bird lawyers are governed by the professional rules on integrity and client confidentiality in the applicable bar rules.

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