To support the development of Uzbekistan’s startup ecosystem and increase investment flows into innovative projects, a special legal framework known as the Regulatory Sandbox has been introduced. The mechanism was launched as part of the Digital Startups Program, established under Presidential Resolution No. PQ-357 of October 14, 2024, and is aimed at fostering startup projects and strengthening the venture financing ecosystem.

The Regulatory Sandbox is a special legal regime designed to test venture investment activities in startup projects within a controlled environment. It enables the practical application of innovative financing instruments, the assessment of their effectiveness, and the development of recommendations for future regulatory improvements.

The Regulatory Sandbox was introduced to achieve the following objectives:

• creating favorable conditions for attracting venture investment into startup projects;
• supporting the growth of the startup ecosystem;
• testing effective approaches to regulating venture investment activities;
• improving the legal and regulatory framework;
• piloting innovative investment instruments in practice.

The Regulatory Sandbox is in effect from January 1, 2025, to January 1, 2027. Based on the results of the pilot period and the experience gained, further improvements to venture investment legislation are expected to be developed and implemented.