Policy paper

Insight Paper on Web3

This paper sets out the perspective of the DRCF on the possible harms and benefits associated with Web3, and explores the regulatory considerations across the DRCF member regulator remits that may be relevant to applications related to Web3.

Documents

Insight paper on Web3

Details

In November 2021, the member regulators of the Digital Regulation Cooperation Forum (DRCF) – the Competition and Markets Authority (CMA), Ofcom, the Information Commissioner’s Office (ICO) and the Financial Conduct Authority (FCA) – launched a technology horizon scanning programme to provide a coherent view of new and emerging digital markets and technologies.

As a part of this programme, the DRCF held a symposium on Web3, which brought together representatives from academia, industry, government and regulators to understand how technologies associated with Web3 are evolving, and to identify regulatory opportunities and challenges facing both firms and public authorities.

Building on the contributions at the DRCF’s Web3 Symposium, this Insight Paper:

  • provides context to the ideas behind visions for Web3 with a brief history of the development of the web and explains the key concepts and technologies underpinning these visions
  • presents the DRCF’s perspective on the possible benefits of the concepts and technologies associated with Web3, as well as the existing and potential consumer harms and wider societal risks
  • explores the regulatory considerations across the DRCF member regulator remits that may be relevant to applications related to Web3
  • sets out the DRCF’s next steps in relation to Web3 as well as its wider ‘Joining up on future technologies’ work programme

This paper represents the culmination of a literature review, as well as the contributions from panellists and a futures workshop at the DRCF’s Web3 Symposium, and also draws on conversations with industry and other non-peer reviewed sources.

Published 3 February 2023