EU To Launch Blockchain Regulatory Sandbox by 2022 (decrypt.co) 9
The European Commission will team up with the European Blockchain Partnership (EBP) to launch a new regulatory sandbox focused on cryptocurrencies and blockchain by 2022, according to an announcement published today. From a report: The commission is the executive branch of the European Union and the initiative is part of its newly adopted Digital Finance Package that aims to provide greater clarity for cryptocurrency companies. "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 commission stated. According to the commission, some digital assets already fall under EU legislation, however, these rules "most often predate the emergence of crypto-assets and DLT." This could result in various roadblocks on the way of innovations and make it difficult to apply existing frameworks to blockchain and cryptocurrencies in the financial sector.
Re: (Score:2)
Those US tech stocks are global businesses, not just US and EU, although they do account for portion of that EU GDP.
But what does that have to do with topic? This isn't about profit making venture, it's about regulating financial money system.
(even if the subject of such regulation, companies implementing digital currencies, EU based or not, do make a profit from it)
What other country has fully developed regulations of crypto or digital currencies? It's a new area for regulators everywhere.
Why? (Score:2)
Re:Why? (Score:5, Informative)
Not all cryptography algorithms are susceptible to quantum computer attacks.
And even for the ones which are susceptible, I have my doubts we will ever get quantum computers which would have enough qubits to be useful. E.g. to run Shor’s algorithm on 2048 bit RSA (i.e. to break it quickly) would require at least 10,000 qubits Good luck with that!
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If you're referring to systems like bitcoin, with financial incentive for 'mining' additional bitcoins, these regulations are aimed much broader than that,
to include systems that don't even feature any such 'incentive' to 'create money'... this is general regulatory overhaul to cover digital currencies.
In any case, "these people" are not instituting such sytems, but rather updating the mechanisms to regulate anybody building such systems.
Any problems you forsee in this class of activity is very likely an
This is an unusual usage (Score:2)
of the word, "sandbox". What the hell are they using it to mean?
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Exactly my thought. I think the theory is anything tech related = random word jumble.
But real question is... How do you say 'blockchain regulatory sandbox' in French?
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Digging through references it's still not at all clear to me what the boundaries of the sandbox are. Is it a technical space like a special network walled off from the open internet only accessible to approved participants? Or is it some kind of abstract "legal space" in which companies can choose to operate so that a different set of more flexible specialized regulators are assigned to them and liability is limited? Will the crypto activities that happen in the "sandbox" be real actual financial transactio