The European Commission launches a regulatory sandbox to test blockchain technology and provide legal clarity to the industry

The actions of US regulators in relation to the cryptocurrency industry were predictable after last year, said Jake Chervinsky, head of policy at the Blockchain Association. However, this can be fought with.

According to the expert, a number of negative points, including the collapse of FTX, largely changed the attitude of the authorities towards digital currencies. At the same time, despite the various statements of politicians in favor of creating universal norms for the operation of the crypto market, so far, this remains just words.

In the meantime, the expert noted, the SEC will continue its policy of tough measures against crypto industry players. Chervinsky believes that the community can resist the agency’s actions.

To do this, it is necessary to initiate a public discussion, to which regulators will have to listen. You can also sue agencies if they exceed their authority. In addition, Chervinsky considers it necessary to conduct educational activities related to the cryptocurrency market among legislators.

Meanwhile, the European Commission has launched a regulatory sandbox as a test drive for blockchain applications as well as legal transparency for the digital asset industry. The project will run over the next 3 years and support about 20 private and public initiatives.

One of the goals of the sandbox is to facilitate international interaction between regulators and blockchain-related businesses. This should help the authorities identify the most effective industry practices.

We would like to remind you that the European Union has been creating a new legal framework for the cryptocurrency industry since 2022. This is necessary for the development of standards and regulations for companies that are associated with digital assets.