Shortly after the OCC announced its new SPNB charter, Arizona's first in the nation fintech regulatory sandbox officially began accepting applications. Following the lead of the UK, Australia, Singapore and other nations, Arizona Governor Doug Ducey in March signed legislation establishing a new framework for regulating fintech firms and products, and the state's Attorney General Mark Brnovich announced that the application process went live on Aug 3. The sandbox provides a testing ground for new business models and will allow approved fintech companies to engage in the testing of products and services on up to 10,000 state residents (and as many as 17,500 residents in some instances) and for up to two years (with the possibility of an additional one-year extension) without additional licensing. After that period, the startup will be expected to apply for a license or stop offering their products and services within Arizona. According to the Attorney General, eligible products or services may include "most types of credit extending services, such as peer-to-peer lending and online marketplace lending," "innovative products and services for money transmission and investment management," and certain blockchain or cryptocurrency products or services. Ineligible products or services include securities trading, insurance products, and services that provide "solely deposit-taking functions." To be considered for admission to the sandbox, applicants must complete the application form in full and pay the $500 application fee. "In reviewing the applications, the Attorney General may consider factors including: capitalization; insurance or bonds and their terms; compliance or legal support; accounting practices; cash on hand; and the number and expertise of active advisors and key personnel. Lacking in one or more of these areas is not necessarily dispositive against being admitted," the Attorney General's Office explained.