Sandbox: The EU Commission's New Blockchain

The European Commission has launched the European Blockchain Sandbox.

The European Commission has launched the European Blockchain Sandbox. What the initiative could do and where there’s room for improvement.

With the European Blockchain Sandbox, the EU Commission has taken an important step to foster DLT infrastructures in the European Union. The Regulatory Sandbox runs through 2026 and includes a total of 20 projects. So-called regulatory sandboxes are meant to enable experimentation with new technologies. In other words, a legally flexible framework is being established that would normally be unthinkable, but is designed to give authorities and innovators the chance to learn from certain projects for innovation research.

The European Blockchain Sandbox aims to test various DLT use cases, from finance to medicine and logistics. Project selection also depends on the maturity of the business case or the legal status. Interested blockchain projects can apply until April 14 at the EU Commission initiative.

DeFi expert skeptical: DAOs left out in the cold

Given the crypto-skeptical voices of the past weeks and months, the EU’s blockchain sandbox is a welcome development. Even if only as a signal that blockchain tech and crypto companies are very welcome in the EU.

However, the sandbox really excludes genuinely decentralized blockchain projects. DAOs are excluded from the EU initiative because having a legal person within the EU is a requirement.

Conclusion on the European Blockchain Sandbox

The EU initiative is broadly positive. Still, it’s hoped that the improvement suggestions coming from the blockchain scene are taken on board. Otherwise, there could quickly be an impression that the EU isn’t taking blockchain technology seriously.

Even for the EU institutions’ own sake, a sandbox with DAOs would be an excellent exercise to gain regulatory experience and, in the long run, create benefits for the EU as a location.