The European Commission has announced the regulators joining the second cohort of its blockchain sandbox initiative.

On September 30, the European Blockchain Sandbox Initiative (EBSI) announced that 41 authorities and regulators from 22 EU and European Economic Area countries have joined the second cohort. These countries include France, Spain, the Netherlands, Italy, Greece, Slovenia, Germany, Cyprus, Portugal, Bulgaria, Belgium, Denmark, Norway, Latvia, Malta, Poland, Hungary, Slovakia, Iceland, Liechtenstein, Lithuania and the Czech Republic.

EBSI was launched to support distributed ledger technology (DLT) use cases. The project aims to establish a dialogue between blockchain projects, regulators and authorities, and to identify legal and regulatory barriers to blockchain innovations.

EBSI aims to increase regulatory certainty for decentralized solutions such as blockchain technology. “The sandbox will enable regulators and auditors to learn about the latest blockchain technologies. Legal advice and regulatory experience will be provided in a secure and confidential environment,” the European Commission said.

EBSI will support 20 projects developing blockchain-based use cases each year. The projects will be selected based on a variety of criteria, including business maturity, legal significance and contribution to EU policy priorities.

In June, EBSI announced the companies that will participate in the second cohort. The selected projects range from tokenization of real-world assets to blockchain-based digital passports.

Iota is one of the projects selected for the second cohort. Iota said that being selected for EBSI is a milestone for identity solutions. The project said that this opens the door to discussions on KYC and privacy in Web3.

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