The Digital Governance Standards Institute (DGSI) announces the publication of CAN/DGSI 123, Design, Implementation and Evaluation of Regulatory Sandboxes. This landmark standard marks a significant step forward in supporting innovation and regulatory flexibility across various sectors of the Canadian economy.
CAN/DGSI 123 provides comprehensive guidance for the design, use, and evaluation of regulatory sandboxes. As policymakers seek novel ways to support Canadian innovators, regulatory sandboxes have emerged as a crucial tool for testing innovations in live environments while maintaining consumer protection.
Key features of the new standard include:
– A clear definition of regulatory sandboxes
– A decision-tree for determining when a sandbox is appropriate
– Essential elements required to establish a sandbox
– Considerations for determining eligibility requirements
– Performance indicators for measuring success
Vanessa Vermette, Chair of the Digital Governance Standards Institute’s Standards Policy Committee, stated, “CAN/DGSI 123:2025 represents a pivotal moment in Canada’s approach to fostering innovation while ensuring robust governance. This standard equips policymakers, regulators, and innovators with a common framework to navigate the complexities of emerging technologies. By standardizing the approach to regulatory sandboxes, we’re not just facilitating innovation; we’re building a more resilient, adaptive, and competitive digital economy for Canada.”
CAN/DGSI 123:2025 emphasizes the importance of designing regulatory sandboxes with the highest levels of trust, security, and transparency. It advocates for a standardized approach to maintain stakeholder confidence in both the regulatory process and the innovative technologies being tested.
The standard offers significant benefits to key stakeholders:
– Regulators: Gain greater market and innovation insight, evidence on how innovation interacts with people and markets, and support for informed policymaking.
– Industry: Reduced barriers to innovation adoption, quicker market entry, reduced regulatory uncertainty, and increased investor confidence.
– Consumers: Assurance of appropriate safeguards when adopting new technologies and an avenue for early intervention in consumer, public, and environmental protection.
CAN/DGSI 123:2025 aligns with the Government of Canada’s commitment to supporting innovation, as highlighted in the recent Federal 2024 Budget, which proposed amendments to the Red Tape Reduction Act to expand the use of regulatory sandboxes.
“The creation of this important standard marks a turning point in the governance of Canada’s innovation landscape,” said Darryl Kingston, Executive Director of the Digital Governance Standards Institute. “As the first national standard for regulatory sandboxes in Canada, it creates a baseline that will set the tone for innovation governance across various sectors and levels of government.”
The standard was developed through extensive collaboration with experts, national and global partners, and public consultation. It will be maintained in accordance with DGSI policies and subject to annual review.
To view and download the published standard, visit CAN/DGSI 123.
Get involved
The DGSI’s standards development process is collaborative and open to all, and anyone interested in contributing to the development of digital governance standards is encouraged to get involved. For more information on how to participate, contact:
Darryl Kingston
Executive Director
Digital Governance Standards Institute
darryl.kingston@dgc-cgn.org
For further details or media inquiries, please contact:
Shyra Wells
Communications and Knowledge Mobilization Lead
Digital Governance Council
shyra.craig@dgc-cgn.org
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 www.dgc-cgn.org or contact info@dgc-cgn.org.