The Regulation of the Metaverse: Promoting Innovation and Addressing Challenges
Promoting innovation and openness
The European Union (EU) is focusing on the regulation of the metaverse, according to recently leaked documents. However, crypto investors need not worry just yet. The document discusses laws that should promote innovation.
According to this document, better rules could stimulate innovation and the metaverse would offer breakthrough opportunities in societal areas such as healthcare, education, and culture. By the end of the year, the commission aims to explore the potential of new digital collaboration models, such as decentralized autonomous organizations (DAOs), and identify the legal, administrative, and economic obstacles preventing their adoption.
It also points to a necessary new form of global legislation. International involvement is needed to address various issues such as censorship and identity management. This is important to ensure that the next generation can enjoy an “open and free” internet.
The document also highlights the risk of gatekeepers, large companies that can block competition from rivals. It warns that such gatekeepers and the proliferation of counterfeit goods could undermine the development of new brands. Therefore, early next year, the Commission will promote ‘regulatory sandboxes’ as a solution to this challenge. Regulatory sandboxes are test environments, such as short-term projects, in which regulations can be tested.
EU throws disastrous Metaverse party
The EU is busy with the metaverse, but that does not always turn out to be a success. Recently, one metaverse gala was held by the Department of Foreign Development. The aim was to appeal to young people outside the political circles of Europe. Unfortunately, only five visitors showed up while the cost of the event was €400,000, so an expensive joke! The investment was part of a €300 billion pot intended for the development of new infrastructure in developing countries. The digital gala received a lot of criticism on Twitter, partly due to poor management.