The European Union (EU) is taking a proactive stance in shaping the future of the metaverse, a shared, immersive digital space that is being touted as the next frontier of technology. Amid concerns of a potential monopoly by large tech-centric companies, the EU is championing the cause of interoperability, user freedom, corporate partnerships, and tailored regulations to ensure a secure and open metaverse.

A leaked draft document from the EU Commission, expected to be released on July 11, reveals the EU’s vision for the metaverse. The document underlines the unprecedented opportunities that virtual worlds bring in various societal areas, while also acknowledging the need for new forms of global governance to manage this technological shift.

The draft document, which was seen by Coindesk, indicates the need for changes in existing legal frameworks to pave the way for new entities similar to decentralised autonomous organisations (DAOs) that would oversee metaverse activities. The EU Commission emphasises several key areas, including health, education, and culture, and envisions a community-driven “web4” that upholds EU values and rules.

To achieve this vision, the document encourages international collaboration on technology standards, identity management, and censorship. The Commission is also supporting the creation of a technical multi-stakeholder governance process to address essential aspects of virtual worlds and Web4 that are beyond the remit of existing internet governance institutions.

The EU has been a leader in digital asset regulation, with the Markets in Crypto Assets Regulation (MiCA) being a prime example of their leadership. This draft legislation aims to regulate cryptocurrencies, stablecoins, and digital asset exchanges and has been praised as a landmark in industry regulation.

The new metaverse document from the EU seeks to strike a balance between users, corporations, and regulators. It emphasises user freedom and interoperability while maintaining stringent standards for data privacy, protection, and gender-based laws. The EU also plans to roll out “sandboxes” to test smaller projects under its rules and introduce a Virtual World Toolbox in Q1 2024.

For corporations, the strategy suggests the creation of specialised web3 hubs focusing on gaming, virtual reality, and related technology. The EU also emphasises the importance of forming partnerships with significant companies to facilitate the development of a metaverse roadmap across the jurisdiction.

As the metaverse sector expands, there are concerns about the emergence of enclosed “walled garden” networks. In response, the EU has stated it will continue to work with firms to promote an open web 4.0, demonstrating its commitment to ensuring the metaverse adheres to its core values, even as it evolves.

The EU’s vision for the metaverse is clear: an open, secure space that champions interoperability, user freedom, and corporate partnerships, all under the umbrella of tailored regulations. As we stand on the precipice of this new digital frontier, the EU’s proactive stance sets a precedent for other jurisdictions to follow.