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Sandbox for AI and Blockchain Startups

Ukraine Β· Framework Β· Ministry of Digital Transformation of Ukraine, Ukrainian Startup Fund

Our summary

This sandbox program provides consultations, audits and expert recommendations to Ukrainian teams developing artificial intelligence and blockchain products. Participants receive legal, technology and business expertise across sectors including public services, healthcare, defense and digital economy. The program runs until October 2026 and is operated by the Ministry of Digital Transformation in partnership with the Ukrainian Startup Fund.

Written by the Index in our own words. It is not legal advice; the official text is the authority.

Inside this policy

Every section of this policy in order. Our notes summarise each one in plain language and do not quote the official text, which is the authority.

Drafted by the Index An automated summary of the official text, not yet reviewed by a person.Reviewed Checked by a person against the official text.

11 sections

  1. Pilot and scale high-tech products with government support

  2. Your company operates in the following types of economic activities

    Defines economic activities in IT, data processing, research and development, and cultural heritage management that are eligible for the sandbox. Participants must complete application parts, develop a research plan, undergo product audit, receive expert consultations and recommendations, and submit a research report.

    Drafted by the Index
  3. The conclusions may include

    Expert conclusions assess product safety, legal compliance and standards adherence, evaluate market demand and identified vulnerabilities or non-compliance, suggest risk mitigation methods, assess improvement measures, and provide recommendations for product implementation.

    Drafted by the Index
  4. Ready to Become a Participant?

  5. Why can participation in the Sandbox be terminated?

    Participants may voluntarily terminate their sandbox participation or face involuntary termination by the organizer if regulatory changes prohibit their product, they breach participation requirements, or adverse company information emerges. The sandbox program itself expires in October 2026.

    Drafted by the Index
  6. Who is not eligible to participate in Sandbox?

    Companies and individuals registered in occupied territories, linked to Russia or Belarus, under sanctions, or with beneficial owners from those countries are ineligible. Products for fintech, gambling, or those prohibited by law cannot be tested in the sandbox.

    Drafted by the Index
  7. How to prepare for participation in the Sandbox?

    Applicants should identify required expertise scope, provide detailed product descriptions including technology and target market, and prepare technical documentation demonstrating innovation. Bankruptcy and debt certificates are recommended.

    Drafted by the Index
  8. Can a company participate in Sandbox if its product is aimed at the international market?

    Companies may participate with products aimed at international markets, as the sandbox considers international standards and regulations including the AI Act to support market entry into the EU and other jurisdictions.

    Drafted by the Index
  9. What happens if serious risks are identified during the assessment?

    Experts help identify risks and their severity while recommending mitigation or remediation approaches without rejecting products or imposing penalties.

    Drafted by the Index
  10. Can you apply to Sandbox again?

    Companies and individuals may reapply to the sandbox with a different product or an improved version of a previously submitted solution.

    Drafted by the Index

Controls

What this policy requires, forbids, grants or penalises, one control at a time and in our own words. Each control links to the official text, which is the authority. This is not legal advice.

Drafted by the Index Drafted automatically from the official text, not yet reviewed by a person.Reviewed Checked by a person against the official text.

Themes covered 11 of 35

Choose a theme to see only its controls. About the themes

Risk and scope 2 of 4

  • Risk classification, not covered
  • Impact assessment, not covered

Data and privacy 1 of 4

  • Data governance and quality, not covered
  • Data subject rights and consent, not covered
  • Copyright and training data, not covered

Transparency and records 1 of 4

  • Transparency and disclosure to users, not covered
  • Labelling of synthetic content, not covered
  • Record keeping and logging, not covered

Technical safeguards 2 of 4

  • Human oversight, not covered
  • Bias and non-discrimination, not covered

Assurance and lifecycle 2 of 4

  • Registration and notification, not covered
  • Incident and breach reporting, not covered

Rights and protected groups 0 of 4

  • Automated decision-making rights, not covered
  • Children and vulnerable groups, not covered
  • Biometric identification and surveillance, not covered
  • Whistleblowing, complaints and redress, not covered

Roles and organisation 2 of 6

  • Supply chain and provider-deployer duties, not covered
  • General purpose and foundation models, not covered
  • Accountability and governance roles, not covered
  • Public sector use and procurement, not covered

Enforcement and sectors 1 of 5

  • Enforcement, penalties and regulators, not covered
  • Sector rules: health, not covered
  • Sector rules: employment, not covered
  • Sector rules: education, not covered

31 controls

Group by

Pilot and scale high-tech products with government support 5 controls

  1. ObligationApplies to: Public authorityDrafted by the Index

    The Ministry of Digital Transformation and Ukrainian Startup Fund should operate a program enabling Ukrainian developers to test high-tech products in digital economy, infrastructure, public services, healthcare, biotechnology, education, agriculture, energy, culture and defense sectors.

  2. PermissionApplies to: ProviderDrafted by the Index

    Ukrainian-registered companies or individual entrepreneurs developing AI or blockchain products may participate in sandbox testing across various development stages.

  3. ObligationApplies to: Public authorityDrafted by the Index

    Sandbox operators should provide legal, technology and business expertise to participant teams.

  4. ObligationApplies to: Public authorityDrafted by the Index

    Sandbox operators should conduct legal audits covering data protection, intellectual property, and compliance with the EU AI Act.

  5. ObligationApplies to: Public authorityDrafted by the Index

    Sandbox operators should perform technological assessment of AI products across their design, operation and deactivation, plus blockchain and cybersecurity evaluations.

Your company operates in the following types of economic activities 3 controls

  1. ObligationApplies to: ProviderDrafted by the Index

    Sandbox participants working in computer programming, IT consulting, data processing, research, engineering and cultural heritage management should complete application sections, develop a research plan, undergo product audit, obtain expert consultations and submit a final report.

    Applies when: IT, data processing, research and development, or cultural heritage sectors

    Your company operates in the following types of economic activities
  2. ObligationApplies to: ProviderDrafted by the Index

    Applicants should provide company details and contact information in the first part of the sandbox application.

  3. ObligationApplies to: ProviderDrafted by the Index

    Applicants should describe their product, obtain electronic signature authorization and submit the second part of the application.

The conclusions may include 4 controls

  1. ObligationApplies to: Public authorityDrafted by the Index

    Expert conclusions for sandbox products should assess safety, legal compliance, standards adherence and market demand.

    The conclusions may include
  2. ObligationApplies to: Public authorityDrafted by the Index

    Expert conclusions should identify defects, vulnerabilities, risks and non-compliance through applied research methods.

    The conclusions may include
  3. ObligationApplies to: Public authorityDrafted by the Index

    Expert conclusions should suggest methods to address identified risks and resolve discovered issues.

    The conclusions may include
  4. ObligationApplies to: Public authorityDrafted by the Index

    Expert conclusions should evaluate improvement measures and provide recommendations for product implementation.

    The conclusions may include

Why can participation in the Sandbox be terminated? 4 controls

  1. PermissionApplies to: OthersDrafted by the Index

    Participants may voluntarily exit their sandbox participation at any time.

  2. PermissionApplies to: Public authorityDrafted by the Index

    The organizer may terminate a participant's sandbox participation involuntarily if a new law directly prohibits the product being tested.

  3. PermissionApplies to: Public authorityDrafted by the Index

    The organizer may terminate a participant's sandbox participation involuntarily if company information emerges that would have made the applicant ineligible.

  4. PermissionApplies to: Public authorityDrafted by the Index

    The organizer may terminate a participant's sandbox participation involuntarily if the participant fails to meet their agreed research plan.

Who is not eligible to participate in Sandbox? 8 controls

  1. ProhibitionApplies to: Public authorityDrafted by the Index

    Companies or entrepreneurs registered in temporarily occupied Ukrainian territories are ineligible for sandbox participation, unless they relocate their tax address elsewhere in Ukraine.

    Who is not eligible to participate in Sandbox?
  2. ProhibitionApplies to: Public authorityDrafted by the Index

    Companies or entrepreneurs that are founders or participants in other entities registered in Russia or Belarus are ineligible for sandbox participation.

    Who is not eligible to participate in Sandbox?
  3. ProhibitionApplies to: Public authorityDrafted by the Index

    Companies or entrepreneurs with subsidiaries or separate units in Russia or Belarus are ineligible for sandbox participation.

    Who is not eligible to participate in Sandbox?
  4. ProhibitionApplies to: Public authorityDrafted by the Index

    Companies or entrepreneurs under sanctions, or with founders or participants subject to sanctions, are ineligible for sandbox participation.

    Who is not eligible to participate in Sandbox?
  5. ProhibitionApplies to: Public authorityDrafted by the Index

    Companies or entrepreneurs with ultimate beneficial owners who are citizens of Russia or Belarus are ineligible for sandbox participation, unless those owners legally reside in Ukraine.

    Who is not eligible to participate in Sandbox?
  6. ProhibitionApplies to: Public authorityDrafted by the Index

    Products for use in the fintech sector cannot be tested in the sandbox.

    Who is not eligible to participate in Sandbox?
  7. ProhibitionApplies to: Public authorityDrafted by the Index

    Products for organizing or conducting gambling activities cannot be tested in the sandbox.

    Who is not eligible to participate in Sandbox?
  8. ProhibitionApplies to: Public authorityDrafted by the Index

    Products that are prohibited by law cannot be tested in the sandbox.

    Who is not eligible to participate in Sandbox?

How to prepare for participation in the Sandbox? 4 controls

  1. PermissionApplies to: OthersDrafted by the Index

    Applicants should identify what expertise they require to develop their product.

    How to prepare for participation in the Sandbox?
  2. PermissionApplies to: OthersDrafted by the Index

    Applicants should prepare a detailed product description covering application area, technology, target consumers and business model.

    How to prepare for participation in the Sandbox?
  3. PermissionApplies to: OthersDrafted by the Index

    Applicants may, but are not required to, provide technical documentation and a justification of how their product is innovative.

    How to prepare for participation in the Sandbox?
  4. PermissionApplies to: OthersDrafted by the Index

    Applicants should prepare certificates showing that their company is not undergoing bankruptcy or has outstanding debts.

    How to prepare for participation in the Sandbox?

Can a company participate in Sandbox if its product is aimed at the international market? 1 control

  1. PermissionApplies to: OthersDrafted by the Index

    Companies may participate in the sandbox with products aimed at international markets.

What happens if serious risks are identified during the assessment? 1 control

  1. PermissionApplies to: OthersDrafted by the Index

    Sandbox experts should help identify risks in assessed systems, evaluate their severity, and recommend mitigation or remediation approaches without penalising or blocking products.

Can you apply to Sandbox again? 1 control

  1. PermissionApplies to: AnyoneDrafted by the Index

    Companies and individual entrepreneurs may reapply to the sandbox with a different product or an improved version of a previously submitted solution.

    Can you apply to Sandbox again?

Change history

No changes recorded since we began monitoring this policy.