According to a recent official press release, the European Union (EU) is taking steps to establish regulations governing the metaverse, a fully functional blockchain-based virtual universe. As the popularity of the metaverse continues to grow, the EU aims to ensure that it sets global standards for open and interoperable virtual worlds, preventing domination by a few big players.
The EU’s focus on regulating the metaverse comes after finalizing laws overseeing the crypto sector through MiCA (Markets in Crypto Assets). With this move, the EU aims to avoid potential risks associated with digital avatars and virtual environments. The EU will deliberate on important questions such as whether digital avatars should have their own legal status and how to protect copyrights and patents within this emerging sector.
The European Commission predicts that Extended Reality (XR) technology, one of the most significant components of the metaverse, will create around 860,000 jobs in the EU. By establishing regulations for Web4 technologies, such as XR, the EU hopes to foster an industrial ecosystem that supports businesses and citizens while guaranteeing safety, trustworthiness, fairness, and inclusivity.
To become a world leader in Web 4.0 and virtual worlds, Europe aims to shape these technologies according to its digital rights and principles. The new Internet is expected to bring numerous benefits and impact how people live together. The size of the global virtual worlds market is projected to reach GBP 800 billion by 2030 from GBP 27 billion in 2022.
Earlier this year, the EU finalized MiCA framework legislation focused on consumer protection and preventing market manipulation in cryptocurrencies. This regulation aims to prevent insider trading and illegal disclosure of inside information related to crypto assets.
With its optimistic outlook on becoming an early adopter of Web4 technologies like those found in the metaverse, it is not surprising that India- and San Francisco-based crypto investment firm Mudrex entered into Italy via Europe shortly after the MiCA regulation was passed.
The sum and substance, as the metaverse gains popularity, the EU is taking steps to regulate this emerging sector. By setting global standards and ensuring a fair and inclusive environment, the EU aims to prevent domination by big tech companies. With its focus on Web4 technologies like XR, the EU envisions creating a robust industrial ecosystem that supports businesses and citizens while upholding digital rights and principles.
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