EU Report — Regulation Will Help Blockchain Succeed

Wilfred Michael 

Wilfred Michael

News reporter

07 March 2019,
21:45
EU Report — Regulation Will Help Blockchain Succeed

The European Union Blockchain Observatory and Forum on March 6, released a report on the current state of the blockchain ecosystem within the EU as well as what could be done to foster the innovative technology.

The paper’s authors highlighted that there is an impressive number of blockchain projects based in the EU and working towards the development of cutting-edge solutions. However, the report admits that most of the EU-based projects are yet to go live, albeit there are currently efforts to do so.

It notes that 2016 was the year of education when people learned about blockchain and its use cases while the two subsequent years served the purposes of proofs-of-concept and setting up of large-scale projects.

It goes ahead to predicts that 2019 will be the year when more of these large scale projects go life and grow their user base to a significant extent.

However, for these EU startups to reach the said milestone, the paper highlights that the policymakers and the “government can play a role in fostering success as well through supporting the development of the base blockchain infrastructure.”

Pointedly, the paper remarked that authorities could help set standards for blockchain projects, fund research into the new industry, provide educational training and also allow projects to experiment in diverse ecosystems before enacting governance-related regulations.

Moving further, it urged the creation of legal frameworks that could define things such as:

  • The accounting status of crypto assets

  • The legal status of smart contracts

  • and how the GDPR relates to blockchain technology.

The report claims that provide clarifications regarding these facts about the industry will go a long way in fostering mainstream adoption of blockchain technology.

Meanwhile, the latest recommendations of the EU Blockchain Observatory and Forum is not the first time that authorities in the region have received suggestions to regulate the crypto and blockchain industry.

In January, the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) issued separate reports urging the European Commission to provide rules for crypto space.

 

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