A leaked European Commission paper suggests that the metaverse needs a fresh approach to global governance in order to ensure its openness and legality. The document, obtained by CoinDesk, further recommends the easing of regulations to foster innovation and examines the legal obstacles surrounding emerging digital collaborations such as decentralized autonomous organizations (DAOs).
The forthcoming document acknowledges that virtual worlds offer unparalleled possibilities across various societal domains, such as healthcare, education, and culture. It emphasizes that this transformative technological advancement necessitates novel approaches to global governance.
To ensure that the future internet remains open, secure, and aligned with EU values and regulations, the document highlights the necessity for international collaboration on critical issues such as technological standards, identity management, censorship, and surveillance. It stresses the need for a technical multi-stakeholder governance framework to tackle key aspects of virtual worlds and Web4 that fall outside the purview of existing internet governance institutions like ICANN.
The document emphasizes the European Commission’s commitment to supporting the establishment of this governance process, aiming to address the unique challenges posed by emerging virtual worlds and the next generation of the web. By engaging diverse stakeholders, the Commission seeks to shape the development of these digital realms in a manner that aligns with fundamental principles and safeguards the interests of all parties involved.
The commission has expressed its intention to investigate new digital collaboration models, including decentralized autonomous organizations (DAOs), which serve as the foundation for numerous innovative financial applications. By the end of this year, the commission aims to conduct a comprehensive study aimed at identifying the legal, administrative, and economic obstacles that hinder the adoption and utilization of these models.
In the coming year, there are plans to introduce “regulatory sandboxes” to facilitate the testing of small-scale projects with reduced regulations, according to a document. The document also highlights concerns about dominant companies acting as “gatekeepers,” hindering competition, and the prevalence of counterfeit goods that undermine brand integrity.
Commission President Ursula von der Leyen pledged to release this document in September of the previous year, with an aim to ensure that the metaverse upholds fundamental rights and privacy in line with EU values. Despite a request for comment, a spokesperson for the commission has yet to respond.