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Over the weekend, a leaked document from the European Commission<a href="https://www.coindesk.com/policy/2023/07/06/eus-leaked-metaverse-strategy-proposes-regulatory-sandbox-new-global-governance/" rel="noopener noreferrer nofollow"> revealed more about the European Union’s (EU) strategy for the cryptocurrency and blockchain industries moving forward.</a>The document, as seen by Coindesk, reveals that the European Commission is planning to propose the relaxation of regulations in order to aid innovation, and to look at legal barriers to new forms of digital cooperation like decentralised autonomous organisations (DAOs).It also reveals that the EC hopes to engage the international community on topics such as technological standards, identity management, censorship, and surveillance so that the next generation of the internet ‘is shaped as an open, secure space, respectful of EU values and rules’.The document also revealed that the European Commission would be promoting ‘regulatory sandboxes’ to test out short-term projects under a lighter regime, and warns of the risk of large ‘gatekeeper&#39; companies blocking out competition from rivals.Understanding Europe’s regulationsThe pro-crypto stance that the EU seems to be taking should not really be news to anyone.Earlier this year, the <a href="https://www.coindesk.com/policy/2023/04/20/eu-parliament-approves-crypto-licensing-funds-transfer-rules/" rel="noopener noreferrer nofollow">European Parliament passed the landmark Markets in Crypto Assets (MiCA) Regulation</a>, which is supposed to protect investors by increasing transparency and putting in place systems to prevent money laundering.But it also streamlines the licensing procedures for companies by allowing them to apply for EU-wide licenses.At the same time, <a href="https://cointelegraph.com/news/france-s-metaverse-consultation-seeks-input-on-alternative-to-tech-giants" rel="noopener noreferrer nofollow">prominent European countries like France have also held public consultations on topics like the metaverse</a>, in order to create alternatives to those that global giants like Meta are intending to create.Europe has also long championed itself as a proponent of open markets and innovation, and cities such as Berlin, Paris, London, and Milan have long been known for having a strong startup culture, including in the fintech scene.The EU itself also has a long history of promoting standardisation and seeking to spread its values overseas. The Euro itself evolved from a desire to use a standardised currency and monetary policy throughout the continent.This new strategy document simply confirms that these policies of seeking standardisation as a means to pursue economic growth and exporting European values and standards will also be applied to this new sunrise industry of blockchain technology.The same old story?Yet, the story of these policies is also a story of repeated failures.Take the EU’s stances on human rights, democracy, free trade, international justice, and the many other issues that Europe holds dear.While countries may nominally agree to uphold human rights and claim to support democracy and free trade, and respect the course of international justice, the truth is that the EU is very much powerless to really enforce these institutions if other countries refuse to cooperate.African Union member states have, on multiple occasions, refused to respect orders from the International Court of Justice to detain and arrest individuals accused of war crimes, and several African countries have withdrawn altogether, accusing the court of only indicting and punishing leaders from small and weak states while ignoring crimes committed by richer and more powerful states.And while the EU pushes for trade liberalisation and an end to protectionism through the World Trade Organisation, developing countries who argue that they need protectionism to develop and industrialise have also increasingly opposed the EU’s proposals and stalled negotiations.The same story exists even when we consider EU partnerships with regional organisations like Southeast Asia.While the EU pushes for Southeast Asia to implement security initiatives such as a code of conduct for regulating actions in the South China Sea, and for ASEAN to defend the rules-based international trading system, Southeast Asia has not shown the same zealousness.For reasons that range from perceived injustices on the international stage, to a need for economic development, the EU has failed to convince the world of the necessity of its values and agenda, and these issues are not likely to be any different from the issue of the metaverse or blockchain technology or artificial intelligence.The simple reason is that every country and region is unique, and at a different stage of development- and therefore values very different things.The EU values clean energy because it is concerned about climate change, and is already industrialised, while China values cheap energy because it is the lifeblood of its economic development.The EU values competition, regulation, and standardisation in the Web3 world because they see the potential for money laundering, but also for lowering transaction costs and improving trade.Yet, less developed countries may see the rise of the Web3 world as a means for breaking the stranglehold that the West has on the financial system, and be less keen on cooperation.While MiCA and other EU strategies and values may be a model for some, global governance is not likely to emerge, for the same reason that it has not emerged in the last 70 years- unequal development and therefore, different and often opposing interests.The goal of global governance, especially for projects such as metaverse creation and artificial intelligence and blockchain technology is a laudable one. But it is also unfortunately one that is not likely to be achieved until more fundamental issues are dealt with, and interests are more aligned. And there is a long way before the world gets there.

The EU wants 'global governance' for crypto and blockchain. They will try, and they will fail

Coinlive

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