The metaverse continues to be a hot topic in the Web3 space, as a group of industry professionals took to the Venus de Milo stage at Paris Blockchain Week 2023 to discuss the future of digital reality.
In the panel “Metaverse Regulation: Dos and Don’ts,” the group discussed how regulators around the world might interpret what goes on in the metaverse, along with how businesses should navigate their entrance into digital reality.
Lawyer and founder of Jacob Avocats Julie Jacob said she sees privacy, regulation, and ethical standards as having “different cultures in different countries.” According to Jacobs, the new challenge is creating regulations that can be applied worldwide:
“There is no standard. It’s really a fantastic opportunity, in my opinion, to now create rules all together and also to create ethical standards.”
Arnaud Pelletier, the innovation director for IBM Consulting France, said regulation is key to ensuring “fairness, competition and protection of individuals,” especially as more businesses enter the metaverse.
However, Pelletier stressed that too much regulation would have “drawbacks” such as limited innovation, too much interpretation and stunted adoption.
In the United States, this has already started to happen, according to Andy Albertson, partner and co-lead at Fenwick. He said it’s pushing “good, hard-working entrepreneurs” out of the country into others that are more receptive:
“It also creates an opportunity for countries that want to lean into this innovation and provide an appropriate level of regulation.”
For enterprises ready to jump into the space, Albertson said they need to “get comfortable with discomfort” to succeed in Web3. As the industry continues to grow, there are still a lot of “grey areas” to work with, he said, adding:
“You have to be comfortable with the strategic risk. I’m not talking about being reckless. I’m talking about marrying up the business opportunity with the risk that you couldn’t eliminate.”
Recently, Margrethe Vestager, the executive vice president of the European Commission, said that current legislation lags behind the technology. She also said that the Commission wants to ensure “healthy competition” in the metaverse in its jurisdiction.