What is a regulatory sandbox and how does it help tokenized real estate?

A regulatory sandbox is a controlled test space run by a regulator. Selected projects can operate with closer supervision and sometimes lighter rules for a limited time.

In Europe and other regions, sandboxes and pilot regimes let platforms test tokenized securities and real estate with real users but clear reporting lines to regulators. 

For tokenization, this means new business models can be tried without waiting years for full new laws, while regulators learn how to update their rulebooks safely.