Looking to the next frontier of technology, the Metaverse, tech-centric giants seem to be leading the race to build the perfect virtual ecosystem. While the concept of a shared, immersive digital space is attractive, it has raised concerns within European Union (EU) regulatory bodies. They pointed to the risk of potential monopolies, which could penalize SMEs and ignore core European values, they warned.

A recently leaked draft document underscores these concerns and reveals the Commission’s aggressive stance. According to the draft, the commission advocates the idea of ​​regulation aligned with innovative technologies to ensure a secure future for the Metaverse. The document, due to be released on July 11th, emphasizes that “virtual worlds offer unprecedented opportunities in many sectors of society.” This technological shift also involves new forms of global governance. ”

Key Provisions of the Draft Document

The draft, reviewed by Coindesk, details the EU’s intentions and calls for changes to the existing legal framework. the purpose? To pave the way for forming new entities similar to Decentralized Autonomous Organizations (DAOs) that oversee the activities of the Metaverse.

The EU Commission focuses on several key areas such as health, education and culture. Its vision is a community-driven “web4” that requires a commitment to interoperability at all levels. According to the draft, the future of the internet should uphold EU values ​​and rules and create an “open and secure space”. To achieve this, the document encourages international cooperation on technical standards, identity management and censorship.

“The Commission will assist in developing technical multi-stakeholder governance processes to address key aspects of virtual worlds and Web4 beyond the mandate of existing Internet governance bodies,” the document reads.

Balance Act: Users, Companies, and Regulators

Regarding regulation in the field of digital assets, the EU states: great progress, set a precedent for other jurisdictions.of Crypto-asset market regulation (MiCA) is a prime example of their leadership. The bill aims to regulate cryptocurrencies, stablecoins and digital asset exchanges. It has been hailed as a landmark in industry regulation. Meanwhile, US management continues to push for clearer regulatory guidelines.

This new Metaverse document from the EU aims to strike a balance between users, businesses and regulators. Emphasize user freedom and interoperability while maintaining strict standards of data privacy, protection, and gender-based laws. In addition, the EU will roll out a “sandbox” for testing smaller projects under its rules, and will introduce a virtual world toolbox in the first quarter of 2024.

This strategy offers companies to create specialized Web3 hubs focused on games, virtual reality, and related technologies. In addition to this, there is also an emphasis on forming partnerships with key companies to facilitate the development of a Metaverse roadmap across jurisdictions.

In terms of challenges, a widespread concern within the metaverse space is the emergence of closed, “walled” networks as the sector expands. In response, the EU pledged to continue working with businesses to promote Open Web 4.0. This foresight demonstrates their commitment to ensuring that even as the Metaverse evolves, it adheres to its core values.

By Jules

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