In the burgeoning space of virtual reality, or rather the metaverse, technology behemoths are jostling for dominion. But the powers that be within the European Union are sounding a note of caution. The fear they express is of a potential monopoly that could undermine smaller entities and consequently, lack the essential European values. A sneak peek into a draft document hints at the Commission’s intent to customise regulation to fuel future innovation in the virtual world. The central idea is the necessity of international governance to ensure metaverse safety while at the same time making it an open, secure space that respects EU rules.
For the metaverse to reach its full potential, global governance is critical. As the document outlines, the virtual world presents opportunities that are hitherto unseen in various societal sectors. The regulatory vision includes the creation of corporations echoing decentralized autonomous organizations (DAOs) which will oversee metaverse activities. Areas such as health, education and cultural activities emerge as key domains of focus as the transition to a community-driven “web4” gains momentum. However, realizing this goal hinges on the adoption of interoperability at all levels.
When it comes to digital asset regulations, the EU has showcased its regulatory prowess leaving many other jurisdictions trailing. Initiatives like the Markets in Crypto Assets Regulation ( MiCA) designed to oversee cryptocurrencies, stablecoins, and digital asset exchanges is hailed as a breakthrough industry regulation, giving the EU a clear edge while the United States grapples with regulatory ambiguity.
The forthcoming metaverse paper envisages a balanced atmosphere for the community, corporations, and regulators. For users, it underscores freedom and interoperability paired with protection of personal data, stringent privacy safeguards and strident regulation around gender-based laws. Furthermore, the EU aims to initiate “sandboxes” to examine smaller projects under its regulatory parameters and to launch a Virtual World ToolBox in Q1 2024.
For businesses, the plan offers a promise of specialized web3 hubs focused on gaming, virtual reality, and related technologies. It also entices them with potential partnerships with eminent companies for development of the metaverse roadmap all across the jurisdiction.
Nevertheless, a key issue still haunts the burgeoning metaverse realm, notably the apprehension of enclosed “walled garden” networks which might stifle the industry’s growth as it escalates. The document articulates the EU’s commitment to maintaining ties with corporations to cultivate an open web 4.0, alluding to Mark Zuckerberg‘s assertion that an “interoperable metaverse is better for everyone.” Genuine concerns or mere alarmism? The dice is cast, as they say, and only time will reveal the full picture.
Source: Cryptonews
