The new EU Blockchain Observatory and Forum has been launched on 1/02/18, with the support of the European Parliament. The Blockchain Observatory and Forum will highlight key developments of the blockchain technology, promote European actors, and reinforce European engagement with multiple stakeholders involved in blockchain activities.

Dr Mureed Hussain, co-founder of the British Blockchain Association, welcomes the report in an interview with Douglas Clarke-Williams of PaymentsCompliance:

“It appears increasingly likely that EU authorities will introduce some kind of innovation-friendly legal framework that encompasses the technology.”

Dr Hussain pointed to those areas which he believes require special attention:

“I think the EU regulatory authorities should adopt an approach which is consumer-friendly, which is tech friendly, so we become the fintech and DLT leader globally. At the same time, we wouldn’t like to disrupt our financial services, we wouldn’t like to disrupt our security. Anti-money laundering and know your customer (KYC), when it comes to fin-tech and peer-to-peer trade, will be crucial.”

Blockchain’s potential in the field of authentication and identity verification were also emphasised by Andrus Ansip, the commission’s vice-president for the Digital Single Market.

“Technologies like blockchain can help reduce costs while increasing trust, trace-ability and security,” said Dr Hussain.

“They have huge potential for making social and economic transactions more secure online by guarding against an attack and removing the need for any middleman.”

Dr Hussain pointed to a number of countries which, like Lithuania, had taken significant early strides in blockchain regulation. He highlighted Estonia and Dubai as two regions that exemplified development in the sector, adding that the former was significant both in terms of mass adoption and regulation by national authorities.