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EC to launch blockchain regulatory sandbox by 2022

European Commission blockchain sandbox_IFM_Image
For the launch, EU will collaborate with European Blockchain Partnership

The European Commission is set to launch a new pan-European blockchain regulatory sandbox by 2022, media reports said.

The commission, which is an executive branch of the European Union (EU), will collaborate with European Blockchain Partnership (EBP) for the launch.

The initiative is part of its newly adopted digital finance package that aims to provide greater clarity for cryptocurrency companies.

The European Commission told the media, “By making rules safer and more digital friendly for consumers, the Commission aims to boost responsible innovation in the EU’s financial sector, especially for highly innovative digital start-ups, while mitigating any potential risks related to investor protection, money laundering and cyber-crime.”

The sandbox will be used to test use cases of blockchain and digital assets in the European Blockchain Services Infrastructure (EBSI). Previously, it was reported that the EU is planning to establish a regulatory framework by 2024 to promote the adoption of blockchain and digital assets in the financial sector.

“The pilot regime represents a so-called ‘sandbox’ approach – or controlled environment – which allows temporary derogations from existing rules so that regulators can gain experience on the use of distributed ledger technology in market infrastructures,” the commission said.

Most recently, the commission adopted the new digital finance package including digital finance and retail payments strategies. The package is a legislative proposal to introduce more stringent requirements for stablecoin issuers in terms of capital, investor rights, and supervision.

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