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How Do Regulatory Sandboxes Impact KYC Requirements for New Crypto Projects?

Regulatory sandboxes are frameworks set up by financial regulators to allow new technologies to be tested in a controlled environment with relaxed or modified regulations. This often means new projects can operate with temporary, simplified KYC/AML requirements.

The goal is to foster innovation while monitoring risks before full compliance is mandated.

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What Is a Sandbox Environment in the Context of Crypto Regulation?