Europe takes a proactive approach on regulation of Blockchain Technology
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The regulation of new technologies has always lagged behind the rapid evolution of the technologies themselves. So far blockchain has been no exception since many global jurisdictions have been working hard to find ways to regulate the emerging technology. However, Europe has acted quickly and has shown quite a positive stance on the regulation of Distributed Ledger Technology, or DLT (a general term for technologies like blockchain). Europe sees the benefits of blockchain technology and aims to position the region as a leader in blockchain and promote mainstream adoption.
Europe has been actively taking steps to promote the advancement of blockchain research and adoption. In February, the European Commission launched the EU Blockchain Observatory and Forum which aims help facilitate cross border cooperation on practical uses of blockchain technology. It is also worth noting that the European Commission has been providing funding for the EU’s research programs since as early as 2013. A few months later in April 2018, the European Blockchain Partnership was created to establish a European Blockchain Services Infrastructure that will aid in the development public cross border blockchain-based services. Current members of the partnership include 27 EU member states and Norway.
In October of 2018, the EU Parliament released a resolution on its overall stance on the regulation of blockchain technology. It highlighted the fact that the EU hoped to regulate blockchain in a way that promoted innovation and did not hinder the implementation of the technology. The resolution further went on to explore the possible benefits and implementations of blockchain in various areas such as supply chain, finance, healthcare, and education, while also addressing the issues of personal data management and fraudulent exchanges and Initial Coin Offerings (ICOs). It also urged regulators and the European Commission to strengthen their technical expertise so that they can act quickly to respond to any changes relating to the rapidly-changing technology. A provisional resolution was released later in December of 2018 expressing the desire to implement blockchain for international trade and streamline the entire supply chain. Enterprises were urged to take advantage of the technology to reduce export costs and make business easier by reducing risks related to contracts and payments.
Although there are many uncertainties in the future, Europe’s efforts to promote blockchain technology is a big step towards mainstream adoption. The emphasis on research and regulatory support of the space will create an environment that promotes creativity and innovation. In the near future other jurisdictions will hopefully follow Europe’s lead and create a world where humanity can benefit from blockchain technology.