Commencement of Work for CAN/DGSI 123, A New Standard on Design, Use, and Evaluation of Regulatory Sandboxes

May 19, 2023 – The Digital Governance Standards Institute (DGSI) is moving forward and commencing work on the development of the CAN/DGSI 123 – Design, Use and Evaluation of a Regulatory Sandbox standard. This standard is aimed to specify guidelines for the design, use and evaluation of a regulatory sandbox.

Regulatory sandboxes have become increasingly important for policymakers, as it allows them to perform supervised testing on innovative technologies and processes in a controlled environment before introducing them into the market. However, despite being implemented in over 60 jurisdictions worldwide, regulatory sandboxes lack a consistent definition and framework for measuring their success.

This new standard will address this issue by establishing a consistent definition of regulatory sandboxes, a decision-tree for determining their appropriateness, and the essential elements required for their establishment.

By defining best practices for sandbox design, this new national standard aims to accelerate the market-entry of innovation in various sectors. While policymakers may have their own internal policies and procedures, this standard will provide a consistent framework for developing sandboxes. Its successful implementation will increase the use of regulatory sandboxes, reduce barriers to innovation adoption, promote consistency, and contribute to the growth of Canada’s digital economy. It will bring numerous benefits such as greater market and innovation insight for regulators, reduced barriers and faster market entry for industries, and increased consumer protection and early intervention avenues. These advantages contribute to a more robust and dynamic ecosystem that encourages innovation while safeguarding the interests of all stakeholders involved.

This standard fills the existing gap by providing policymakers with a comprehensive framework for sandbox design, use, and evaluation. By aligning sandbox practices, this standard will support Canada’s innovation ecosystem, reduce barriers to market entry, and enhance consumer protection. Its implementation will drive forward the nation’s digital economy and establish Canada as a leader in promoting innovation through regulatory flexibility.


Get Involved

The Digital Governance Standards Institute’s Standards Policy Committee approved the establishment of a new Technical Committee, Technical Committee 16 on Regulatory Sandboxes. As an organization, we highly prioritize collaboration and openness in our standards development process. We firmly believe that the best standards are created through the collective effort of diverse stakeholders. Therefore, we extend a warm invitation to all interested parties to actively contribute to our ongoing work. If you are interested in contributing to the work of the technical committee on Regulatory Sandboxes to assist in the development of this new standard, please get in touch through the contact below.

Get in touch with Darryl Kingston, Executive Director of Standards for more information or to get directly involved.


For media inquiries:

Julia Hancock
Senior Project Manager, Standards
Digital Governance Standards Institute


About the Digital Governance Council 

The Digital Governance Council is a member-driven organization that acts as a cross-sector neutral convener for Canada’s executive leaders to identify, prioritize and act on digital governance opportunities and challenges. The Council leads an Executive Forum for council members, sets technology governance standards through the Digital Governance Standards Institute and certifies the compliance of Canadian organizations in the management of the effective and efficient use of digital technologies. To learn more about the organization and its initiatives, visit or contact


About the Digital Governance Standards Institute 

The Digital Governance Standards Institute develops digital technology governance standards fit for global use. The Institute works with experts, as well as national and global partners and the public to develop national standards that reduce risk to Canadians and Canadian organizations adopting and using innovative digital technologies in today’s digital economy. The Institute is an independent division of the Digital Governance Council. To learn more about the organization and its initiatives, visit or contact

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