The United Nations’ UNESCO and the Dutch government have launched a project titled “Supervising AI by Competent Authorities”. Initiated with a boost from the European Commission’s Technical Support Instrument, this venture aims to research how European countries are supervising artificial intelligence (AI) and create useful guidelines derived from the best practices observed. UNESCO‘s Assistant Director-General for Social and Human Science, Gabriela Ramos, framed the undertakings as a distinctly societal issue, despite its tech-focused theme.
While praising the initiative, one must also question whether a single, standardized framework for AI supervision could be flexible enough to cater to the distinctly diverse landscapes of individual European nations. For instance, Spain revealed its plans for a locally based AI regulation agency. This local agency intends to ensure that AI development in the country is “inclusive, sustainable, and citizen-centered”.
In contrast, Germany displays a fractured image, with politicians and digital experts offering varied viewpoints on managing and implementing AI technology. Thus, a one-size-fits-all solution might not ascertain the nuanced requirements of each state, which could potentially lead to inefficiencies in the long run.
Meanwhile, in Hong Kong, as adoption of cryptocurrency trading for individual investors progresses, a local official emphasized that retail stablecoin trading is not yet permissible. Christian Hui, Hong Kong’s Secretary for Financial Services and the Treasury, pointed out that the city has yet to adopt regulations for stablecoins like Tether (USDT) or USD Coin (USDC), prohibiting retail investors from trading these assets.
The contrast is evident: on one side, the pursuit to regulate and manage AI and on the other, the delayed introduction of stablecoin regulations. It may be questioned whether such an extensive focus on analyzing and containing AI’s scope is taking resources away from the development of other necessary protocols, such as those needed to regulate stablecoin transactions.
The plight of JPEX users, who reported nearly $180 million in losses, is a stark reminder of the possible consequences of a lack of regulatory oversight. The imminent introduction of regulatory guidelines for the stablecoin market by the Hong Kong Monetary Authority is a promising move, but it is also a reactive measure that might have been preempted with proper forward planning.
In essence, the evolution of the digital and crypto world is a high-speed race, where regulation and mitigation efforts need to match step with technological advancements. The key is to strike a balance between embracing innovation and ensuring consumer protection.
Source: Cointelegraph
