The EU Commission has European Blockchain Sandbox taken an important step to promote DLT infrastructures in the European Union. The Regulatory Sandbox is scheduled to last until 2026 and will include a total of 20 projects. So-called regulatory sandboxes are designed to enable experiments with new technologies. A legal framework that is as unbureaucratic as possible is defined, which would be unthinkable under normal crypto, but which should offer innovation research an opportunity for both authorities and innovators to learn from certain projects.
The European Blockchain Sandbox wants to test various DLT use cases from finance to medicine to logistics. The project selection depends, among other things, on the degree of maturity of the business case or the legal status. Interested blockchain projects can apply to the EU Commission’s initiative until April 14 apply.
DeFi expert critical: DAOs are left out
In view of the crypto-critical voices of the past few weeks and months, the blockchain sandbox of the EU is to be welcomed. If only as a signal that blockchain technology and crypto companies are very welcome in the EU.
However, the sandbox leaves out truly decentralized blockchain projects. DAOs are excluded from the EU initiative because a legal entity within the EU is a prerequisite.
In this context, DeFi expert Peter Großkopf warns that “we should not forget that most innovations in the blockchain space have been developed over the years by innovators in the open source community.” He also believes that “there should be a way to get DAOs into the program as there are some already successful protocols like AAVE that have their roots in Europe.”
Conclusion on the European Blockchain Sandbox
The EU initiative is to be welcomed in principle. However, it is to be hoped that the suggestions for improvement from the blockchain scene will be taken into account. Otherwise, the impression can quickly arise that blockchain technology is not really serious.
Also in the own interest of the EU institutions, a sandbox that includes DAOs would be an excellent exercise to gain regulatory experience and thus create long-term EU locational advantages.
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