The Central Bank of the Republic of Azerbaijan is continuing the assessment of applications to join the second intake of its special regulatory regime for testing innovative financial products. Following the close of the intake period, 14 applications are under review for compliance with the regime’s requirements, after which a final decision will be taken on admission. The applications relate to pilots involving virtual assets, payment services, and innovative products in insurance and other financial market segments. The sandbox is designed to allow testing within limited parameters and under the Central Bank’s supervision, with participants conducting tests based on a contract to be concluded with the Central Bank. Innovative products that meet the sandbox criteria and complete testing successfully are intended to be implemented in financial markets, alongside the development of an associated regulatory framework.