Back to the list

Web3 Foundation Struggles for Clarity in Web3 Sector Legislation

source-logo  blockchainreporter.net 30 June 2023 11:28, UTC

In its ongoing pursuit of lucid laws within the Web3 domain, the Web3 Foundation recently organized a panel discussion as part of Polkadot Decoded. The session delved into the present state of web3 legislation in the European Union (EU), where the foundation’s flagship initiative resides. The panelists explored the benefits of web3 blockchain technology and its potential to address the challenges faced by Web2.

They unanimously agreed that web3 necessitates well-defined regulations that consider the practical usage of blockchain technology, emphasizing user behavior over technical intricacies. Moreover, the discussion highlighted how countries with more structured legal frameworks, such as the EU, are outpacing those with ambiguous definitions and jurisdictions, thus encountering fewer hurdles.

Educating government agencies about blockchain technology is crucial to the Web3 Foundation’s mission. It believes that regulations should align with the nature and activities of businesses. Encouragingly, some countries are trying to adapt their laws to the realities of technology. During the panel, Daniel Schoenberger, the Chief Legal Officer of the Web3 Foundation, cited the EU’s MiCA law as an exemplary instance of heightened awareness. “The EU’s recognition of utility tokens as a distinct class is a pivotal step in acknowledging the various types of tokens based on their functionalities,” Schoenberger emphasized.

The panel, titled “The Decentralized Web: How Much Regulation Is Necessary?” featured an array of experts, including Joachim Schwerin, European Commission Principal Economist; Paige Collings, Senior Speech and Privacy Activist at the Electronic Frontier Foundation; Alfred Früh, Professor of Private Law at the University of Basel; and Ana Trbovich, Vice Chair of the Energy Web Foundation.

Remarks from execs

Joachim Schwerin, Principal Economist at the European Commission, remarked that blockchain represents a societal revolution. He further noted that the EU’s declaration of blockchain as its top innovation goal across all policy fields demonstrates an unprecedented recognition of decentralization and grassroots empowerment.

Ana Trbovich, Vice Chair of the Energy Web Foundation, compared with the programming language Python, stating that, like Python, blockchain should not be excessively regulated during specific applications of blockchain warrant attention in behavior regulation.

Paige Collings of the Electronic Frontier Foundation emphasized addressing behaviors rather than technologies regulating Web3 to mitigate privacy threats. She stressed that while decentralization exists, bad actors persist, necessitating the application of the same standards for privacy and freedom of expression that are upheld in the centralized web.

Professor Alfred Früh of the University of Basel discussed the potential of blockchain in protecting intellectual property rights, asserting that Web2 had disrupted the copyright system. He called for collaboration between blockchain entities and established authorities such as patent, trademark, and copyright offices to foster a cohesive ecosystem.

Through such insightful discussions, the Web3 Foundation strives to navigate the complex landscape of regulations to enable the flourishing of Web3 while safeguarding the interests of all stakeholders involved.