Online Safety Bill to Regulate Metaverse Activities Awaits Final Approval in the UK
Summary:
A proposed UK law, the Online Safety Bill, focusing on regulations for specific internet services including activities in the metaverse, awaits King Charles' ratification after successfully passing through Parliament. The law seeks to ensure that online platforms swiftly eliminate illicit content or prevent its publication. Companies failing to adhere to these regulations could face fines reaching billions of pounds. The bill has faced opposition for possibly allowing government surveillance and damaging user privacy if it forces backdoor access to end-to-end encrypted platforms. In parallel, the House of Lords progresses the Economic Crime and Corporate Transparency Bill, targeting crypto-related financial crimes.
A proposed law concerning the management of specific internet applications, including elements of the metaverse, in the United Kingdom has navigated through Parliament and is now expecting ratification from King Charles to establish its legal status. The U.K. government disclosed on September 19 that the Online Safety Bill has concluded its last discussion in Parliament and is poised to take effect nationwide "shortly." Legislators have hitherto considered the potential for legislation focused on safeguarding internet users, particularly children, to expand into virtual environments such as the Metaverse. The government has stated that the final draft of the bill necessitates that social media platforms promptly remove unlawful content or effectively prevent it from being published, primarily focusing on content considered to potentially harm children. Also, these companies will be obliged to present risk evaluations to users explaining how to report concerns regarding online safety.
Failure to adhere to these regulations could result in the Office of Communications penalizing social media platforms by fines of up to £18 million or 10% of their worldwide annual income, whichever has the highest value. Consequently, colossal platforms could face fines amounting to billions of pounds - as announced by the government. Some critics of the bill have called for amendments that would defend end-to-end encryption, asserting that the proposed law could permit the government access to a clandestine passage, subsequently undermining user privacy. In June, Apple supposedly expressed that the contemporary version of the bill constituted "a tangible threat" regarding "surveillance, identity theft, fraud, and data breaches.”
Meredith Whittaker, chairperson of the Signal Foundation, announced in a social media post on September 20 that the encrypted messaging app could potentially depart from its operations in the U.K. If they were "compelled to construct a backdoor" according to the stipulations within the Online Safety Bill. Whittaker's assertion came on the heels of Parliament's final review of potential modifications, a process that did not contain clear protections for encrypted services.
Simultaneously, the House of Lords is advancing the Economic Crime and Corporate Transparency Bill, which is intended to tackle crypto-related financial felonies in the United Kingdom. In the final stages before the law takes effect, lawmakers will assess the remaining changes, but the latest draft ostensibly permits the U.K. authorities more power to investigate and seize crypto used for illegal means. The U.K. Travel Rule went live on September 1, mandating crypto firms providing services to residents, a policy similar to that adopted by nations such as the United States, Japan, and Germany. This mandate could force companies to suspend certain crypto transfers from jurisdictions that aren't already in compliance with the Travel Rule.
Published At
9/20/2023 5:00:00 PM
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