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Another significant advantage of smart regulation is the potential for reduced compliance costs. Traditional regulatory frameworks often impose hefty costs on businesses, particularly small and medium enterprises (SMEs), which may lack the resources to navigate complex regulatory environments. By simplifying requirements and utilizing technology, smart regulation can lower these costs, allow for greater market participation, and stimulate economic growth. The adoption of regulatory sandbox models, which allow for experimentation with new business models in a controlled environment, exemplifies this approach.


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In conclusion, smart regulation represents a promising evolution in how societies govern complex sectors. By embracing technology, fostering stakeholder engagement, and adopting flexible frameworks, smart regulation can create a conducive environment for innovation, safeguard public interests, and stimulate economic growth. As we move forward, it is essential for regulators to navigate the potential challenges carefully, ensuring that the benefits of this approach are accessible to all, ultimately contributing to a more resilient and responsive regulatory landscape.


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