Finland’s Minister of Communications urges the European Union to adopt a law recognizing DAO

The Minister of Communications of Finland, during a discussion at the World Economic Forum in Davos, said that the adoption of centralized laws would prevent the destruction of European legal codes and improve the regulation of the crypto industry.

Timo Harakka believes that the European Union should adopt a single law recognizing decentralized autonomous organizations (DAOs) that manage digital assets and Web3 applications.

Harakk said the move could prevent the need to change the laws of every member of the eurozone.. These acts will be able to contradict each other, as countries will compete in the race to attract innovative business to their jurisdiction.

“It is necessary to think at the cross-national level in order to avoid harmful regulatory competition between the 27 members of the union. This approach is similar to the adoption of the Crypto Assets Act (MiCA) and, like it, will define a single standard for each country,” Harakka said.

The Minister announced that the European Commission, which is responsible for proposing new EU laws, is obliged to closely monitor the situation.

In 2019, a law came into force in Finland that regulates cryptocurrency services and companies, including exchanges, wallet operators and cryptocurrency issuers.

In mid-2022, Bank of Finland Governor Olli Rehn announced his support for the digital euro project, along with the use of private financial technologies. According to the head of the Central Bank of Finland, the use of the digital euro in settlements will help simplify cross-border payments in Europe.