SANDBOX – "ANSWERS" FOR LEGAL PROBLEM IN THE 4.0 TECHNOLOGY ERA

31/10/2019, 16:29 PM

Because of the remarkable advancement of science and technology, the legal system needs to be constantly innovant to create the best conditions for technology applications, new business ideas to be put into practice as well as minimize the risks due to lack of adjustable legal frameworks.

The fourth industrial revolution with technologies such as artificial intelligence, Internet of things, big data, cloud computing, etc are working directly to the economy and society in Vietnam, while concepts such as virtual assets, cryptocurrencies, taxi technology, etc also gradually became popular. This is to arise many legal issues related. The term sandbox is referred to as a solution for legal issues.

The sandbox is a pilot framework, allowing a handful of businesses to test new technologies, new business models in a practical environment, but with defined scope and time and under the supervision of state regulatory bodies, and appropriate risk prevention to prevent the consequences of failure without greatly affecting the national financial system.

The 4.0 economy, with the rapid development of technology, has created new business ideas or business models, and rapidly negates old models. There are some idea of shared economy such as Uber, Grab, Airbnb; crypto currency; Peer-to-peer lending... These business models can have a huge impact on the economic institutions,or even cause the old mechanism to collapse. For example, the operation of a crypto currency immediately creates an “international currency”, which can result in the disabling of the management of a country's State bank, affecting the monetary sovereignty of countries.

Face with such new economic problems, the government often approached in a conservative manner as attempting to issue policies aimed at managing, controlling or restricting such economic realities, or at worst as "prohibit the unmanageable". But when that business model is beyond the government's control, the solution of control or prohibition is not feasible, and will damage the economy if the idea is open to a new development trend.

From that fact, several countries governments choose a more flexible approach: letidea be free to develop in a controlled environment and limited time to follow up until the Government know-how the way that model to operate and propose appropriate measures of conduct. The pilot framework, which is called "sandbox" was born and is rated as a comprehensive solution for the governance of the State in the current 4.0 technology era.­
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