The European Commission to shape Europe’s digital future is ready to embrace blockchain-based applications. With a motive to bring transparency in the legal framework, shortly the regulatory sandbox is going to be established in the EU.
In a recent update, the European Commission- the governing body responsible for proposing and implementing legislation in the EU reveals about the upcoming actions of clearly setting up the legal and regulatory framework for blockchain tech and crypto-assets.
According to the updates, the new regulatory sandbox is vital to increase investments while ensuring consumer and investor protection. The initiative would help to sort out the legal and regulatory fragmentation prevailing in pan-European countries.
The European Commission is focusing on blockchain technology sincerely and in a direction to bring financial freedom with security, the European commission joining hands with the European Blockchain Partnership (EBP).
EBP is an alliance of 30-countries that formed on April 10th, 2018, to launch the European Blockchain Services Infrastructure (EBSI) to bring security and privacy in the EU and to deliver EU-wide cross-border public-focused digital infrastructures and services using blockchain technology.
“Blockchain technology has enormous potential to enhance the way that citizens, governments, and businesses interact, by enhancing trust between entities and improving the efficiency of operations,” according to Connecting Europe Facility (CEF).
The European Commission and EBP, intending to launch a pan-European blockchain regulatory sandbox by 2022. Once the sandbox becomes operational, the corporation would facilitate to work on the use cases both in the EBSI and outside of EBSI.
The sandbox would also enable testing in “data portability, B2B data spaces, smart contracts, and digital identity (Self-Sovereign Identity) in the health, environment, mobility, energy, and other key sectors.”
Reportedly, on Sep 24th the European Commission, while mentioning about the regulatory sandboxes, also issued a “comprehensive package of legislative proposals for the regulation of crypto-assets and updated a few financial market rules for cryptocurrencies, that would also support the “firms providing services around crypto-assets like firms operating digital wallets, as well as cryptocurrency exchanges.”