The leaked EU Metaverse Strategy includes a regulatory sandbox and governance structure.
Recently, a leaked paper from the European Commission has brought attention to the need for new global governance in the Metaverse to ensure openness and legality.
The draft document suggests loosening regulations to encourage innovation and addresses the legal obstacles faced by decentralized autonomous organizations (DAOs) and other forms of digital collaboration.
The draft document acknowledges the potential of virtual worlds in areas such as education, healthcare, and culture, stating that “this technological shift also involves new forms of global governance.”
International collaboration is emphasized, particularly in areas such as technological standards, identity management, censorship, and surveillance. The document underlines the importance of shaping the future of the internet as an open and secure space that aligns with EU values and regulations.
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Referring to existing organizations like the Internet Corporation for Assigned Names and Numbers (ICANN), the document proposes the creation of a technical multi-stakeholder governance process to address aspects of virtual worlds and Web4 that fall outside the scope of current internet governance institutions.
European Law Commission and Crypto
The European Law Commission has been actively working on developing frameworks and structures for the crypto industry. Recently, the UK Law Commission proposed the development of laws governing cryptocurrencies and the establishment of the UK as a global hub for digital assets and non-fungible tokens (NFTs).
The Commission aims to explore the potential of digital cooperation models, including DAOs, and will conduct a study to identify barriers to their adoption.
In the early part of next year, the promotion of “regulatory sandboxes” will be initiated to test short-term projects under a more flexible regulatory framework. The document also raises concerns about the dominance of large “gatekeeper” companies that may impede competition from smaller players and the threat of counterfeit goods that can undermine brand integrity.
