Web3 Foundation, the organization behind Polkadot, recently held a panel at Polkadot Decoded to discuss Web3 regulation in the EU and its impact on the industry. The panelists stressed the need for tailored regulations focusing on behavior, not technology. Daniel Schoenberger, Chief Legal Officer of Web3 Foundation, emphasized the importance of legal clarity to encourage Web3 innovation and support startups. The discussion highlighted the EU’s MiCA Regulation as a leader in establishing clear rules, while other jurisdictions risk falling behind.
The panelists recognized the advantages of web3 blockchain technology in addressing challenges like privacy, security, and intellectual property rights. They emphasized the significance of regulations that understand the unique applications of blockchain and regulate behavior rather than the technology itself. Such regulations would provide clarity to Web3 entrepreneurs and create an environment conducive to innovation.
Legal Clarity and the EU’s Approach:
Daniel Schoenberger commended the EU’s MiCA regulation as an example of tailored regulation that recognizes the different functionalities of tokens. He highlighted the need for jurisdictions to understand and regulate companies based on their actual nature and activities. The EU’s proactive stance on blockchain technology demonstrates a deep understanding of its potential societal impact and the necessity of embracing innovation.
Expert Panel Insights:
The panel included notable experts who shared their perspectives on blockchain technology and regulation.
- Joachim Schwerin (Principal Economist at the European Commission) emphasized the revolutionary nature of blockchain technology and its priority in Europe’s policy agenda.
- Ana Trbovich (Vice Chair of Energy Web Foundation) stressed the importance of regulating behaviors rather than blockchain technology itself to ensure technology neutrality.
- Paige Collings (Senior Speech and Privacy Activist at Electronic Frontier Foundation) highlighted the need to address privacy risks and consider speech and privacy concerns in decentralized systems.
- Alfred Fruh (Professor of Private Law at the University of Basel) discussed the potential of blockchain to restore control to creators and the importance of integrating traditional authorities into the blockchain ecosystem.
The panel discussion at Polkadot Decoded emphasized the necessity of legal clarity and tailored regulation for the Web3 industry. Web3 Foundation and its Chief Legal Officer, Daniel Schoenberger, advocate for regulations that focus on behaviors rather than stifling technology. The EU’s MiCA Regulation is praised for its understanding of utility tokens and its efforts to create a favorable regulatory environment. As blockchain technology continues to evolve, regulatory frameworks that foster innovation while addressing concerns will play a crucial role in shaping the Web3 industry’s future.