[European Commission Selects Iota Web3 ID as Blockchain Sandbox]
The European Commission announced the selection of Iota’s Web3 identity solution to participate in the European Blockchain Sandbox Initiative (EBSI). On June 13, the European Commission announced the second group of selected participants for the EBSI, which includes open source distributed ledger and cryptocurrency ecosystem Iota.
Iota’s selection highlights its Web3 identity solutions developed in partnership with Walt.id, IDnow, Bloom Wallet and HAVN. Iota said that this choice is an important milestone for its identity solution: "This opens the door to regulatory discussions about KYC and privacy in the Web3 environment. This is at a time when many regulators are considering their concerns about decentralization. This is especially important when it comes to financial (DeFi) methods.”
EBSI was launched by the European Commission in 2023 to provide a testing ground for distributed ledger technology (DLT) solutions across multiple industries. Each batch will include up to 20 projects, which will be tested and validated in a controlled environment with the opportunity to interact directly with regulators from across the EU.
In addition to Iota, selected projects include RealEstate.Exchange (REX) DigiShares, file and business-focused blockchain DoxyChain, smart contract and blockchain security analysis project Hacken, and artificial intelligence-centered knowledge base Facility Project Origintrail.
Iota’s Web3 ID solution aims to revolutionize traditional KYC processes, which are often plagued by inefficiencies, high costs, and privacy concerns. The solution enables a reusable KYC system through DLT and tokenization to enhance security and user control over personal data.
Currently, the EU is actively promoting a digital identity plan. On May 21, the European Union updated its European Digital Identity (EUDI) regulations first released in February 2023, requiring full implementation by 2026.
