Successfully reported this slideshow.
Your SlideShare is downloading. ×

PODIM 2018 | The regulatory framework


Check these out next

1 of 16 Ad

More Related Content

Slideshows for you (20)

Similar to PODIM 2018 | The regulatory framework (20)


More from PODIM Conference (20)

Recently uploaded (20)


PODIM 2018 | The regulatory framework

  1. 1. EU Initiatives on blockchain Podim, Maribor – 16th May 2018 Pierre MARRO, Startups and Innovation Unit DG CONNECT – European Commission 1
  2. 2. Who understands Bitcoin… and cryptocurrencies, and blockchain, and ICOs, etc? 2
  3. 3. Evolution of blockchain Blockchain 1.0 is the CURRENCY, the deployment of cryptocurrencies in apps related to cash, and financial transactions Blockchain 1.0 is the decentralization of money and payments Blockchain 2.0 is CONTRACTS, the deployment of smart properties, digital assets, and smart contracts Blockchain 2.0 is the decentralization of markets Blockchain 3.0 is APPLICATIONS, in new areas of smart cities, IoT.M2M, government, health, science, and art. Blockchain 1.0 Blockchain 2.0 Blockchain 3.0 3
  4. 4. Beyond the financial sector 4Global Blockchain Benchmarking Study, Cambridge Judge Business School
  5. 5. Key trends – Investments 5
  6. 6. Key trends – ICOs panorama 6
  7. 7. Legal and regulatory issues Smart contracts Legal status Liability/Responsibilty Compliance with national rules GDPR Identity Anonymisation/ pseudonimisation AML/KYC "right to be forgotten" controller/processor of data cross-broder transfer of data regulatory sandboxing IPR Jurisdiction Litigation Consumer protection Competition/Antitrust Tax issues ICOs /tokens Prevention of fraud Governance 7
  8. 8. Key reflections regarding regulation • Initial Coin Offerings (ICOs) / crypto assets / tokenization • new funding mechanism to raise capital • Grey regulatory zone • New tokenomics • Anti Money Laundering • e-identity (emerging model of self sovereign-identity); GDPR (data protection); • Smart contracts, legal validity and enforceability • Cybersecurity • Liability … • + Sectoral regulations Technology neutrality – enabling innovaton – harmonisation 8
  9. 9. FinTech Action plan  Published 8th March 2018  Aim to help financial industry to make use of rapid tech advancements, such as blockchain and other IT applications, and strengthen cybersecurity  Enable innovative businesses to scale up  Support uptake of new technologies  Outlying EU blockchain strategy, beyond FinTech  Monitoring the dev. of crypto-assets and ICOs (with ESAs, ECB and FSB…) 9
  10. 10. EU Blockchain Observatory and Forum • Launched on 1st February 2018 Create an expertise hub to access, share, produce and disseminate knowledge on blockchain technologies, with objectives to: • Mapping existing initiatives, focus on Europe + worldwide map • Monitor technical development and trends • Develop expertise and community building by stakeholders' mobilisation and engagement • Address sectoral and cross cutting issues (governance, legal & regulatory, scalability, interoperability…) • Build on EU interest use cases • Inputs for EU policies / actions 10
  11. 11. Prepared by ConsenSys for the EU Blockchain Observatory and Forum A repository of blockchain experiences and expertise, a source of knowledge and inspiration 11 Accelerate Blockchain innovation and ecosystem development in Europe Enable Citizens and businesses, particularly SMEs, to benefit from the technology’s socioeconomic potential Take advantage Of blockchain technology to foster the digital single market and promote cross- border interoperability Goals Activities Produce and share knowledge Analyse blockchain developments and trends Identify relevant existing blockchain initiatives Create an attractive and transparent forum Highlight opportunities and issues at stake regarding the technology
  12. 12. Prepared by ConsenSys for the EU Blockchain Observatory and Forum Structure, roles and responsibilities Academic partners Produce research papers to enrich the discussion • Lucerne Univ. of Applied Sciences & Arts • Univ. of Southampton • Knowledge Media Institute (Open Univ.) 3 EU Blockchain Community Open to a large number of volunteers, managed via online platform 4 Project governance and management Prioritize, set objectives and overview day to day activities DG CONNECT, ConsenSys, selected partners 1 Working groups Discuss, analyse and make recommendations 2 Blockchain Policy and Framework Conditions Use Cases and Transition Scenarios Up to 30 selected contributors Up to 30 selected contributors 12
  13. 13. Prepared by ConsenSys for the EU Blockchain Observatory and Forum Three online pilars dedicated to the Observatory and Forum 13 Blockchain map Note: Visuals do not represent final version The public face and knowledge repository Hosting information about the Forum, thematic reports, case studies, videos, research papers, educational content about blockchain, FAQs, news, and… All blockchain initiatives in one place Crowdsourced yet verified information about blockchain initiatives around the world. Allowing visitors to search and filter information about a wide variety of blockchain projects An open and attractive forum discussion Facilitating engagement with teams, contributors and community. Bringing together a large panel of expertise (legal, entrepreneurs, technologists, government representatives…) oups/20630Visit
  14. 14. Digital Day 2 (10th April 2018) Declaration on a European Blockchain Partnership with Member States in order to: • Cooperate towards a European blockchain infrastructure • Develop governance models, compliant with EU laws and reflecting its values • Ensuring interoperability • Stimulating new business models • Positioning Europe in a leadership role 14
  15. 15. Other Initiatives • Standardisation, Interoperability Participation into ISO TC 307, ITU-T, CEN-CENELEC White Paper on blockchain • Funding R&I actions through EU programmes ~30 collaborative projects already funded (eg IoT, smart grids, home and cities, Mgt of health data, social goods, Media, transport & logistics etc…) • Moving from PoC to pilot to implementation Feasibility study on the opportunity of a EU blockchain Infrastructure, other EU programmes (CEF…) • Skills development and internal expertise 15
  16. 16. Thank you! • • @EUBlockchain 16

Editor's Notes

  • MIT analysed 1500 ICOs. 5% were frauds and scams. Goes up to 12.5% if you count websites that have disappeared or gone dark. 25% if you count everything suspicious. Some of the teams are incompetent.
    To compare, 75% of early Kickstarter campaigns were delayed in starting.
    13. Securities - participation in future financial returns
    14. Utility tokens - products and services
    15. Switzerland distinguishes between asset tokens, payment tokens, and utility tokens.
    1. Most activity has switched to infrastructure building (new Internet)
    2.The teams are very young - centred around the age of 25
    h. Regulation can play a massive role
    i. The opportunity for a country without a Silicon Valley to build one.
    (1) these teams are mobile
    (2) Switzerland raised over a Billion $
    (3) the opportunity for countries without a strong VC tradition to raise capital for startups. It is a complement to VC but not a replacement, like equity crowdfunding for accredited investors (crowdfunding for non-accredited investors in the U.S. is dead)
  • - Yet supervisors may take different approaches to identifying the applicable EU legislative framework and applying proportionality when licensing innovative business models. The European Banking Authority identified differences in authorisation and registration regimes as an area requiring further attention. EIOPA observed similar trends22. The European Central Bank (ECB) also recently launched a consultation on a ‘Guide to assessments of FinTech credit institution license applications’23.
    - The EU framework proposed in this Action Plan will offer a comprehensive European passporting regime for those market players who decide to operate as European crowdfunding service providers (ECSP). This framework will provide incentives for crowdfunding service providers to scale-up while ensuring sufficient protection for investors and project owners.
    In the course of 2018, the Commission will continue monitoring the developments of crypto-assets and Initial Coin Offerings with the ESAs, the European Central Bank and the FSB as well as other international standard setters. Based on the assessment of risks, opportunities and the suitability of the applicable regulatory framework, the Commission will assess whether regulatory action at EU level is required.
    In the EU, 13 Member States have established what are called ‘FinTech facilitators’ (innovation hubs26 or regulatory sandboxes27) to provide general guidance to firms

  • strengthen cooperation in the development of a European Public Blockchain Infrastructure that can enhance value-based, trusted, user-centric digital services of public interest across-borders