The policy and regulation uncertainty has been identified as one of the main challenges for the deployment of blockchain based solutions. While the blockchain technology is in use since 2008, its application in business and public services has steadily grown in the last years. Policymakers and regulators recognize the need to set up a framework that helps unleash the full potential of blockchain as a revolutionary technology.
Laws and regulations need to be adapted to this new decentralized reality.
But why is this so important?
Companies want to be compliant.
One of the most important business risks is linked to compliance with laws and regulations. Blockchain opens up a full new way to approach business solutions and regulations are actually not fully addressing this decentralized reality. New regulatory challenges appear such as defining the liability of network participants/providers, application of AML regulations, governance, data protection regulations, territoriality and some specific industry based laws such as capital markets legislation and others. Companies need legal certainty to develop their business solutions. A revision of the regulatory framework for blockchain would serve this need.
Blockchain is a driver for economic growth and well-being.
Blockchain can be used in basically all different types of industries. It also can be used in the public as well as in the private sector and allows participants of different nature to collaborate in the development of new solutions with new (decentralized) approaches. This opens new ways to approach social challenges. Policymakers wish to see the potential of blockchain used to solve some of these most acute current societal needs. This requires a common effort to set up the right scene to let the technology flourish in applied economics.
Blockchain technology was born without frontiers. Those regions that are faster and better regulating blockchain will attract innovation and business. Policymakers and regulators are increasingly aware of their responsibility to create the right environment to promote the establishment of blockchain ecosystems that let the technology bloom and its business uses grow.
Source: PwC’s Global Blockchain Survey 2018, https://www.pwc.com/blockchainsurvey
Regulators and policymakers are increasingly devoting time and effort to provide businesses with a clear framework for the use of blockchain. This important challenge can only be faced on the basis of a collaborative effort with all the involved parties. SMEs and companies of all sizes play an important role. They are using blockchain to develop practical solutions and their feed back on the right regulatory approach is key.
Blockchers supports SMEs using blockchain technology. An important part of the Project aims at developing policy recommendations for the European Institutions directly based on the practical experience of the participants SMEs. They are currently developing blockchain solutions and can provide positive feed back on their needs to set up a policy and regulatory framework that allows blockchain based solutions to be developed for the good of the European and worldwide society.