One year of the AI and blockchain Sandbox: Helping technology products scale safely

One year ago, the Ministry of Digital Transformation, together with the Ukrainian Startup Fund, launched Sandbox — a dedicated environment for technology products powered by artificial intelligence and blockchain technologies. The initiative enables companies to test their solutions, undergo comprehensive audits, and prepare for scaling into international markets. The first year of operation has proven that even the most promising technology requires more than strong code — it also demands a clear understanding of legal, regulatory, and business frameworks.

 

First-year results: From testing to shaping the market

During its first year, the Sandbox team received more than 80 applications from Ukrainian developers. Fifteen companies were selected for the first cohort and have already completed testing. Participants represented a wide range of sectors, including government technology (GovTech), healthcare (MedTech), the digital economy, culture, and defense.

For us, one of the most valuable outcomes has been seeing expert recommendations translated into concrete improvements in product architecture, business processes, and company strategies. Startups are identifying and addressing technical and legal vulnerabilities at a stage when these issues have not yet affected budgets or reputations. Most importantly, the practical experience gained by participating companies is helping shape balanced, flexible, and modern Ukrainian legislation in the field of artificial intelligence.

 

What Sandbox is and how it works

The AI and blockchain Sandbox is a joint experimental initiative of the Ministry of Digital Transformation of Ukraine and the Ukrainian Startup Fund.

We created an effective mechanism that enables developers to receive individualized expert support free of charge, identify hidden vulnerabilities, and address them before an official launch or expansion into new markets.

It is a safe environment where innovation meets regulation without bureaucratic barriers, penalties, or legal risks for businesses.

 

Participation in Sandbox provides startups with three key advantages:

• Comprehensive audit and EU scaling readiness. Each company receives an individualized approach. Based on its specific needs, we assemble a team of relevant industry experts who conduct a free audit across three dimensions, legal, technological, and business, and provide step-by-step recommendations for product improvement. This helps adapt solutions to the EU’s stringent artificial intelligence regulatory requirements under the AI Act. Participants also have an opportunity to contribute recommendations for shaping Ukraine’s future regulatory framework.

• A green light for investors. Completing the audit process and receiving a positive expert assessment demonstrates a responsible approach to risk management. For international investment funds, this serves as a clear signal that a product is compliant, secure, and ready to scale.

• Expertise from leading market practitioners. There is a common misconception that projects of this type rely exclusively on government officials. In reality, Sandbox experts are highly experienced professionals from the private sector. They undergo a rigorous selection process, maintain impeccable professional reputations, and sign non-disclosure agreements (NDAs). All sensitive product information remains fully protected.

 

Audit areas available to participants

The Sandbox expert group conducts detailed assessments across three core areas:

Legal expertise. Covers general legal auditing, evaluation of personal data protection and processing practices, comprehensive intellectual property analysis, and assessment of AI solutions for compliance with the EU AI Act. It also includes an in-depth human rights impact assessment using the HUDERIA methodology.

Technology expertise. Provides a comprehensive review of AI and blockchain products across the entire lifecycle — from design through deactivation. Experts evaluate data quality, model architecture, performance, and security. Blockchain technologies, smart contracts, and full cybersecurity audits are also available.

Business expertise. Helps assess business model maturity, analyze go-to-market strategy, and evaluate financial readiness to identify growth opportunities and support sustainable scaling.

 

How to join the project

Ukrainian developers creating products in artificial intelligence or blockchain can apply to participate in the project.

Expert review does not slow development — it helps companies avoid critical and costly mistakes early in the process.

Learn more about participation requirements and submit an application via the link.

The Ministry of Digital Transformation continues working to ensure Ukraine remains a technology hub where innovation is not only created but also scaled globally safely and responsibly. We thank all companies, experts, and partners who contributed to Sandbox’s first year.