Recent legislative developments in Europe showcase policymakers’ diverging approaches to cryptocurrencies and a wider array of non-monetary Blockchain applications. Crypto regulation is tightening[1], driven by the tide of anti money laundering measures that the European Parliament approved last week.
This, however, does not mean they are not embracing Blockchain’s potential beyond currency. On April 10, Europe came one step closer[2] to establishing a common approach to the implementation and regulation of Blockchain technology. A Declaration on a European Blockchain Partnership[3] brought together 20 EU member states, Norway, and the departing United Kingdom in an expression of a shared vision and policy goals. The agreement, sealed during the European Commission’s Digital Day 2018, offers a number of insights into how the continent’s policymakers conceive of Blockchain’s potential uses and governance.
A major point that is immediately clear from the language of the declaration is that it is primarily about Blockchain as a service rather than as a financial instrument. The introductory clause describes the technology’s potential to bring about “value-based, trusted, user-centric digital services” that would encompass both private and public sectors and operate across borders. The authors emphasize that in order to make the best of the opportunities that the technology offers, it is critical to avoid a “fragmented approach” to its implementation.
Rather than creating a separate framework for coordinating distributed ledger technology (DLT) governance, it is evident in the document that the partner states have agreed to embed it into the existing policy arrangements. The overarching scheme to host the new policy domain is the Digital Single Market[4], the European Commission’s initiative aimed at facilitating the expansion and integration of Europe’s digital economy. One main focus is creating infrastructure for providing online governmental services
