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 either as: i) a legal entity registered in the professional or commercial register 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.

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 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 (5) persons per participant.

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).

How will information that is contributed by the regulators in the course of the operation of the sandbox be protected?

Information 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.

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 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 signed 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 for the 1st cohort will be completed in Q2 of 2023.

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 entities. The qualification of the enterprises depends on staff headcount and turnover or balance sheet based on EU Commission recommendation 2003/361. 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 submit an application before the end of the application term and fall within the category of public entities (Article 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? 

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 tie-breaker between two or more use-cases, how do the tiebreaker criteria work?

There are two tie-breakers: “Geographical uniqueness” and “Regulator support”, 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).

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

This is not a requirement as long as 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.

Are the regulatory sandbox meetings taking place remotely, offline or in a hybrid format?

The meetings will be carried out remotely/virtually.

Our project consists of multiple components in various TRLs. We can provide evidence for the individual building blocks, but not for the whole, how should we proceed? Because in this sense, the project has not started yet, so we have no date of validation (D.1), but all the components are highly advanced and we want to try to put them to work together to produce a new solution.

The use case for which the application is submitted needs to meet the eligibility test of a validated proof of concept (question D.1) as a whole. Information about additional 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 if applicable) must have been a legal person for at least six (6) months either as: i) a legal entity registered in the professional or commercial register 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. 

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 have been a legal person for at least six (6) months either as: i) a legal entity registered in the professional or commercial register 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. 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 have been a legal person for at least six (6) months either as: i) a legal entity registered in the professional or commercial register 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. 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).

Is the fact that a use case is developed for the European Blockchain Services Infrastructure (EBSI) an impediment to submitting an application for the sandbox?

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 entities (Article 4.2 Application Terms). Reference is made to Q&A 12 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 first 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 entities. The information with respect to the applicant determines the lot-category. Public entities can participate in consortia falling within the first 3 categories as long as they are not the applicant.

Are there any immediate benefits, for the successful applicants, coming from the sandbox participation?

The regulatory Sandbox aims to provide legal certainty through facilitating regulatory dialogue and cooperation between innovators and regulators at the national and the EU level. Blockchain companies participating in the Sandbox have the opportunity to demonstrate their innovative solutions and highlight their needs regarding regulatory guidance and legal certainty to regulators and supervisors in a safe and confidential environment. They will receive legal advice from legal experts and be part of a constructive dialogue with national and EU regulators. Also, they will be able to develop their regulatory understanding and extend their network and reputation through their participation in this pan-European project. The participation in the Sandbox is free of charge for the applicants. There will be no reimbursement of costs of participation.

How do you define a validated proof of concept? For instance, if the solution is already being implemented at some clients of the applicant, does that count as 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 TLR-levels). See the explanations provided in question B.5 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.

Is the European Blockchain Sandbox comparable with a pilot that provides certain exemptions from existing regulation?

The goal of the regulatory sandbox is to foster dialogue and cooperation between national and EU-level regulators and innovators and thus remove regulatory and legal uncertainties for DLT use cases. Concretely, the sandbox will (1) at the level of the individual use case projects in the sandbox, deliver legal advice and regulatory guidance in a safe and confidential environment, thus increasing legal certainty and understanding of the relevant rules and standards for companies and allowing regulators and supervisors to enhance their knowledge of cutting edge blockchain technologies; and (2) at the broader industry and ecosystem level, summarize the experience and lessons learned in the sandbox in best practices reports for the benefit of the wider blockchain community raising the attention of regulators to issues with the law as it stands.

However, the sandbox does not provide a derogation from existing regulatory requirements.

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 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 which may include a motivation but it can also be kept more simple because the applicant is requested to mention specific regulatory topics which are of particular interest in relation to the use case.

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.

Is participation in the sandbox limited to regulators that are supporting a specific use case.

No, participation in the sandbox is not limited to regulators that are supporting a specific use case. Regulators who are interested to participate in the regulatory dialogues in the sandbox are invited to contact the sandbox team at info@blockchain-sandbox.eu in order to make sure that the interest can be taken into account in the matching process.

What are the anticipated time commitments of taking part in the Sandbox for the regulators 

The dialogues in the sandbox are organised in an efficient way with a focus on two sandbox meetings that will be well-prepared in accordance with the sandbox operations roadmap that is attached to the sandbox protocol (link to the sandbox protocol). Participants in the sandbox meetings are requested to support the dialogue and cooperation in the sandbox by providing information and actively participating in these meetings.

 If I cannot fill-out all of 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 application needs to be submitted in the English language. This also applies to the annexes. A simple English translation is sufficient (no need to submit a certified translation 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.

Which information should be submitted in response to C.2 of part C (Qualification as start-up, scale-up or mature company) also in view of company’s policies and confidentiality?

The latest approved annual accounts of the company showing the qualification of the company as microenterprise, small enterprise or other enterprise should be submitted. In the case of a newly established enterprise whose account have not yet been approved, the information to attach is a bona fide estimate made in the course of the current financial year.

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. In addition reference is made to the response to question 6 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?”).

The documentation states that the application form needs to be signed. How should this be done?

The application form itself does not need to be signed separately but has to be submitted electronically by providing the requested information, ticking the three boxes at the end for acceptance of i) the Applications Terms and Conditions, ii) the Protocol for Sandbox Participation and iii) the Privacy statement for sandbox application and selection and clicking on the “Submit” button at the bottom of the form. This needs to be done by a person authorized to submit the application on behalf of the applicant (and its consortium members if applicable).

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. This declaration on honour needs to be signed in accordance with the instructions at the end of the form (electronic signature or handwritten signature). 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.

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 if applicable) must have been a legal person for at least six (6) months either as: i) a legal entity registered in the professional or commercial register 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. 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.

Could regulatory issues in relation to interoperability be discussed as part of the sandbox?

A wide range of regulatory topics could be covered in the sandbox including in relation to interoperability. Applicants are requested to mention specific regulatory topics in which they are particularly interested in part E.14 of the application form.

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”).

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