European Union (EU) Competition Chief Margrethe Vestager has refuted claims that new artificial intelligence (AI) laws will hinder innovation, stating that they will provide legal certainty for tech companies operating in the EU even as the region’s crypto regulations align.
Vestager also stated that the laws will direct the development of models such as OpenAI’s Generative Pre-Trained Transformer system. Her remarks follow criticism from French President Emmanuel Macron that the new policy is too onerous.
EU Chief Argues for Happy AI Middleground Vestager said it’s critical to understand what to anticipate from industrialized AI models. She also issued a warning against excessive regulation and advised applying the law carefully to avoid impeding enterprises.
Macron had earlier claimed that the new laws will disadvantage European IT businesses in the fight for artificial intelligence. Although it was a good thing that the EU was regulating “faster and much stronger” than other regions, he noted that the laws may hinder EU enterprises to the point where they become unprofitable.
Then, larger US competitors will gain market share from the companies. Regulations, according to Vestager, can promote trust, which will increase investment in and usage of the technology.
Laws Can Promote Trust, But There Are Obstacles Stay Put
EU crypto laws haven’t made businesses less competitive. Rather, they have established a level of legal certainty that can assist companies in building confidence.
Exchanges have until the end of the year to abide by the Markets-in-Crypto-Assets (MiCA) regulations in Europe, which dictate how exchanges are permitted to provide stablecoins. Certain issuers are pursuing compliance in the interim.
In order to supplement the coin’s availability on other networks, Circle, the creator of the second-largest dollar-backed stablecoin globally, introduced its euro-pegged asset EURC on Solana. Despite negative interest rates, EURC found it difficult to draw volumes; nonetheless, Circle’s growth indicates that it believes the asset has a future. This month, the established French bank Societe Generale introduced the EUR CoinVertible stablecoin, a significant endorsement.
Ireland was chosen by Coinbase as its European hub in October in order to ensure compliance with MiCA. The business stated in a blog entry, To date, about 100 businesses have willingly signed an AI contract in order to abide by the new rules before the deadline. Ursula von der Leyen, the president of the European Commission, pledged to assist businesses in completely adhering to the Act.
