EC tests the prowess of DLT through a sandbox

The European Blockchain Regulatory Sandbox is helping regulators to understand the benefits of blockchain in financial services domain:

- Mohan

The European Commission had launched a regulatory sandbox to develop innovative use cases in Distributed Ledger Technologies (DLT). The sandbox, named European Blockchain Regulatory Sandbox, was created jointly by the European Blockchain Services Infrastructure (EBSI), set up in 2018 when 29 countries (all EU members states, Norway and Liechtenstein) and the European Commission. It is intended as a pan-European framework for regulatory dialogues to create legal framework for blockchain solutions. Started in 2023 and expected to be completed by 2026, it is funded by the Digital Europe Program. What is noteworthy is that it is based on SME strategy and supports 20 projects annually. It is being facilitated by a consortium under the leadership of legal firm Bird & Bird and its consulting arm OXYGY. Participants are expected to exchange non-personal data to develop algorithms for use in asset management, insurance, transportation, energy and manufacturing sectors. Some of the pilots have shown excellent result in the use of DLT across industry sectors.

DIALOGUE, BEST PRACTICES

The key objectives of the sandbox are:

• facilitate confidential discussions between blockchain innovators and regulators;

• provide specialized legal and regulatory guidance;

• develop best practices for blockchain adoption across different industries;

• strengthen cross-border collaboration within the EU's regulatory landscape.