- The European Commission has added Iota’s web3 identification solution to its EBSI initiative
- The commission uses the EBSI program to evaluate the impact of decentralized technology in various sectors
- Iota said that the addition will ignite “regulatory discussions about KYC”
Four months after the European Union set crypto-focused anti-money laundering authority, the European Commission is now advancing the region’s involvement in the decentralized space by adding Iota’s web3 ID solution to its sandbox initiative. Dubbed European Blockchain Sandbox Infrastructure (EBSI), the European Commission uses the initiative to test the effect of decentralized technology in different sectors. Iota is confident that its addition to EBSI will spur KYC and privacy-focused regulatory discussions, further helping regulate decentralized products.
Not the Only One
The European Commission revealed the inclusion of the Iota web3 identification solution when announcing selected projects for the second EBSI cohort. According to Iota, their selection will help regulators explore decentralized identification especially in the DeFi space.
Projects included in the second cohort will be offered a chance to engage with regulators and to test their creations. Other projects in EBSI’s second selection included DoxyChain and Hacken which are document and security-focused blockchain projects, respectively.
The inclusion of several projects focusing on decentralized ledger technology (DLT) adds to the EU’s continued exploration of the technology. A year ago, for example, the EU embraced the use of blockchain technology for credential verification.
The credential verification platform was developed by EBSI Vector in partnership with Protokol, a web3 firm. Two months ago, the European Commission disclosed that it’s considering formulating DeFi-specific regulations. The regulations would help expand the scope of the region’s Markets in Cryptoassets (MiCA) rules.
China Also Exploring the Blockchain
Europe isn’t alone in exploring DLT technology. China is also on the forefront and has launched a national blockchain center and recently unveiled a blockchain project for cross-border applications.
With Europe furthering its steps in the DLT world, it’s to be seen whether it’ll inspire other regions like the United States and Russia to put in similar efforts.
