The European Union’s executive arm launched a regulatory sandbox for innovative applications for distributed ledger technologies (DLT) that underline crypto.
The regulatory sandbox created by the European Commission on the blockchain industry in the continent is aimed at facilitating “the cross-border dialogue with and between regulators and supervisors on the one hand, and companies or public authorities on the other hand,” an official announcement said.
The initiative is part of an EU Funding program to bring citizens, businesses, and public administrations to the digital age. The Bloc is considering an exploration of how DLT-based solutions could help cut out intermediaries in securities trading, with a pilot due to begin in March.
The DLT Sandbox will run until 2026 and will support 20 projects involving blockchain applications for public and private sector use “to verify the information and make services more trustworthy.”
The first call for applications will begin on the 14th of April.2023 Which will involve a panel of independent academic experts, who will select projects for the first round. The sandbox is open to “companies from all industry sectors” as well as public entities.
“Priority will be given to more mature use cases where legal and regulatory questions of broader relevance arise,” the announcement showed.
DLT which stands for Distributed Ledger Technologies can support regulatory technologies which help public authorities fight counterfeit in global supply chains and protect verifiable credentials (e.g.: education diplomas) against fraud. Companies can use the technology to train algorithms with the exchange of non-personal data. The technology also enables the creation of unique digital twins for assets they buy, sell, or insure in the mobility, energy, and manufacturing sectors.
The selection of use cases will be done by the sandbox facilitator based on criteria agreed with the European Commission. The European Commission will not, however, endorse individual use cases to participate. The facilitator will be supported by an independent academic panel of experts for the selection of use cases. Selection for participation in the sandbox does not imply a legal endorsement of the business model.
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