The European Commission’s Web4 strategy might be a flop

Published

2 years ago

July 18, 2023

admin

On July 11, the European Commission formally adopted its new strategy on Web4 and virtual worlds with the aim of ensuring “an open, secure, trustworthy, fair and inclusive digital environment” for European Union citizens. The strategy is based on four main pillars, revolving around the empowerment of human resources, support of businesses, further development of public services, and shaping of global standards for “Web 4.0” — a freshly coined term that attempts to preempt the next technological wave.

While it’s commendable that the European Commission is proactively strategizing for the EU to take the lead on Web 4.0, or Web4, and virtual worlds, we shouldn’t neglect the fact that for all the fanfare of Web3 and the trends that accompanied it, notable credit and financial institutions have so far only firmly and mainly placed their confidence in Bitcoin (BTC) and, to a lesser extent, Ethereum.

Indeed, it is difficult to assert that Web3 left anything of considerable substance behind it — aside from a sharp but short-lived spike in the Lamborghini and Rolex markets. The sooner that term is forgotten, the sooner we’ll be able to focus again on the areas that do matter.

The EU’s general stance on Bitcoin has arguably detracted from its image as a forward-looking, technology-advancing region, and it would do well to either retract or modify previously taken positions on matters such as proof-of-work mining. The reinvention of money is far from a light matter, and if the EU is to take a pincer hold of what ultimately makes the world move, it is well-advised to do so by both advancing its digital euro project and also supporting the other side of the coin, thereby hedging its position to a degree where it is minimizing risks and maximizing possible opportunities.

In order to do so, it must proverbially unstick the European Central Bank’s head from the sands, limit any anti-Bitcoin publications from the famed Fabio Panetta, and adopt a neutral monetary stance that aligns with a technology-neutral one.

European Union has introduced its Web4 and virtual worlds strategy

The strategy is in line with the 2030 objectives of the Digital Decade policy program and three of its key pillars of digitalization: skills, business, and public services.

The outlook of the EU economy beyond… pic.twitter.com/lg1X5Yvccj

— FanBe_web3 (@FanBe_web3) July 12, 2023

Moving on to the cornerstone of the proposed strategy on Web4 — digital twinning — it is evident that the EU faces stiff competition from stalwarts such as the United States and China in digitally dominant areas such as artificial intelligence. While one may argue that, on the physical side of things, the EU enjoys a notable position in areas such as manufacturing and global exportation of goods, there is still an appreciable degree of catching up to do in relation to digital areas such as crypto and cloud computing.

In order for the EU to take the lead on the intersection between the physical and digital realms, it must ramp up its efforts to emancipate digitally exclusive domains such as crypto, which presents notable opportunities given the current lull in the market. While most are forgoing innovations such as decentralized finance (DeFi) and decentralized autonomous organizations as passing trends that have recently exited the limelight, it is clear that these are still very early days for such topics, and that optimally positioning oneself while the general attention is elsewhere will very likely pay handsome dividends in a few years’ time.

When it comes to DeFi, specifically, Europe as a continent has quietly asserted itself as a leader, with countries such as Italy and France being the birthplace of some of the most notable projects in the space. It would not do to ignore the advantageous position gained in the market in this respect, and with the total value locked metric still hovering comfortably above the $45 billion mark, it is amply clear that DeFi staunchly took the bear market punch and is nowhere near knocked out. It’s also likely to come back for more in the next market reversal.

With innovations such as ERC-4626 ready to unlock a wealth of exciting new prospects in the space, it is safe to state that we have yet to see DeFi’s true strengths and potential, and if the EU manages to take the helm and steer innovation going forward, it will cement its place in the inevitable financial revolution that has been bubbling in its pot for the past few years.

Over the past decade, cryptocurrency has been reinvented and reshaped to no avail. The promise of a new form of money still remains its strongest premise, and digital assets flourish best in a digital environment. The lessons learned from the repeated security token flops should still be fresh enough to accentuate the fact that we are not yet ready for a seamless intersection between what is digital and what is physical, and that in order for two subjects to simultaneously succeed, there must be a comparable, if not identical, level of excellence.

That is something that is still sorely missing in the EU when it comes to digital and crypto assets, which is why it should remain the focus in the short term.

Jonathan Galea is the CEO and founder of BCAS, a European crypto regulatory consultancy firm. He has consulted numerous regulatory entities across multiple jurisdictions on crypto-related matters, including the structuring of novel legal frameworks. He holds in an LL.D. in law from the University of Malta.

Matteo Vena is the chief strategy officer at BCAS, a crypto-focused regulatory consultancy firm based in Europe. His area of focus is business and marketing strategy in the Bitcoin and digital assets industry. He worked previously as the managing director for Cointelegraph Italy and as the head of content for Blockchain Week Rome.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Politics

Prison release mistakes ‘symptom of system close to breaking point’, says prisons inspector

Published

3 hours ago

November 9, 2025

admin

Prison release mistakes 'symptom of system close to breaking point', says prisons inspector

The chief inspector of prisons has said the recent spate of prisoners being released too early is “a symptom of a system that is close to breaking point”.

Charlie Taylor’s assessment comes as it is revealed that two prisoners wrongly released last year are still at large, as are two others believed to have been freed in error in June this year.

Writing in The Daily Telegraph, Mr Taylor said the growing number of mistaken early releases was “embarrassing and potentially dangerous”.

He also put it down to “an overcomplicated sentencing framework” and described it as “a symptom of a system that is close to breaking point”.

He said prison inspections “repeatedly highlight the failure to keep prisons secure, safe and decent, and to provide the sort of activity that will help inmates get work on release”.

In his opinion piece, the chief inspector pointed to successive governments’ responses to the overcrowding crisis in the system, which put pressure on “junior prison staff who repeatedly had to recalculate every prisoner’s release date”.

These calculations, he wrote, had been made harder by a series of early-release schemes brought in by successive governments.

The changes, he said, “increase the likelihood of mistakes and in three years the number of releases in error has gone up from around 50 a year to 262”.

It comes as ministers face mounting pressure over a series of high-profile manhunts, with Justice Secretary David Lammy admitting on Friday there is a “mountain to climb” to tackle the crisis in the prison system.

Algerian sex offender Brahim Kaddour-Cherif, 24, was arrested on Friday after a police search following his release from HMP Wandsworth in south London last week, which Scotland Yard said officers only found out about on Tuesday.

His recapture was partly down to investigative work by Sky’s national correspondent, Tom Parmenter, who tracked Kaddour-Cherif down to Finsbury Park in north London before he handed himself in to police.

Convicted fraudster Billy Smith, 35, handed himself back in on Thursday after being accidentally freed from the same jail on Monday.

It follows the mistaken release of Hadush Kebatu, who was convicted of sexually assaulting a 14-year-old girl and a woman while living in an asylum hotel. The incidents sparked protests in Epping, Essex.

Prison security checks have been toughened and an independent investigation into mistaken releases launched after the now-deported Ethiopian national was accidentally freed from HMP Chelmsford on 24 October.

A total of 262 inmates were mistakenly let out in the year to March 2025 – a 128% increase on the 115 in the previous 12 months, according to the latest official figures.

Of the total, 90 releases in error were of violent or sex offenders.

Kaddour-Cherif was serving a sentence for trespass with intent to steal, but had previously been convicted for indecent exposure.

He is understood to have overstayed his visitor’s visa to the UK after arriving in 2019, and was in the process of being deported.

Asked about the four missing prisoners on Friday, shadow justice secretary Robert Jenrick said: “The chaos continues. The government keeps putting the British people at risk and is relentlessly failing victims. Does anyone have confidence in David Lammy?”

Mr Lammy said on Friday: “We inherited a prison system in crisis, and I’m appalled at the rate of releases in error this is causing.

“I’m determined to grip this problem, but there is a mountain to climb which cannot be done overnight.

A Ministry of Justice spokesperson said releases in error “have been increasing for several years and are another symptom of a justice system crisis inherited by this government”.

In a statement on Saturday, the ministry said it has introduced “mandatory, stronger prisoner release checks to keep our streets safe and protect the public as well as investing record amounts into our courts – including to improve operational assurance.

“We’re also investing billions, reforming sentencing and building the prison places needed to keep the public safe.”

Politics

Thodex CEO found dead: How this $2B crypto scam changed Turkish law

Published

13 hours ago

November 8, 2025

admin

Thodex CEO found dead: How this B crypto scam changed Turkish law

Faruk Fatih Özer was found dead in his prison cell on Nov. 1. The former CEO of now-defunct crypto exchange Thodex was serving an 11,000-year sentence for running one of the largest crypto scams in history.

His death marks the latest turn in the Thodex saga, with ripple effects so significant they altered Turkish cryptocurrency laws.

The initial details of Özer’s death point to suicide, but the investigation is still ongoing. It has once more brought Thodex back into the spotlight.

Here’s a look back at Özer’s story, how the crypto exchange impacted Turkish law and how it may have contributed to the country’s increased crypto adoption.

$2-billion Thodex scam sees raids, arrest and CEO out on the lam

On April 21, 2021, Thodex cryptocurrency exchange suddenly shut down trading and withdrawals. The initial announcement read that this could continue for four to five days. As Cointelegraph Turkey reported at the time, the exchange claimed that this was to improve its operations with the help of “world-renowned banks and funding companies.”

But local media reported that Özer had fled to Thailand with over $2 billion in funds as part of an exit scam. There were also reports that police had raided the exchange’s offices in Istanbul.

Istanbul’s chief prosecutor’s office corroborated the reports the following day. It announced a probe into Thodex and said police had arrested 62 people allegedly involved in the scam. Özer denied the accusations, claiming his trip abroad was to meet foreign investors.

As of April 30, 2021, a Turkish court decided to jail six suspects, including family members of the missing CEO and senior company employees, pending trial. Interpol also issued a red notice for Özer.

“When he is caught with the red notice, we have extradition agreements with a large part of these countries. God willing he will be caught and he will be returned,” said Interior Minister Süleyman Soylu.

Özer managed to evade capture for over a year. Albanian authorities eventually detained him on Aug. 30, 2022. He attempted to appeal extradition in court, but the decision was upheld, and Özer was in Turkish custody by April 30, 2023, two years after the scandal began.

*Özer was detained by Turkish authorities after being extradited from Albania. Source:* AA

The case against Özer was swift. In July 2023, just three months after arriving in Turkey, he was sentenced to seven months and 15 days in prison for failing to submit certain documents requested by the Tax Inspection Board during the trial.

On Sept. 8, 2023, the Anatolian 9th High Criminal Court sentenced Özer, along with two of his siblings, to 11,196 years, 10 months and 15 days in prison, along with a $5-million fine.

In court, Özer claimed that he and his family were facing false accusations. He said, “I am smart enough to manage all institutions in the world. This is evident from the company I founded at the age of 22. If I were to establish a criminal organization, I would not act so amateurishly. … It is clear that the suspects in the file have been victims for more than 2 years.”

Özer was serving his sentence at the Tekirdağ No. 1 F-Type High Security Closed Penal Institution when he died. F-Type prisons are high-security institutions reserved for political prisoners, members of organized crime syndicates and other armed groups serving an aggravated life sentence.

Human rights advocates have repeatedly raised concerns about the conditions at F-Type prisons. In 2007, Amnesty International noted “harsh and arbitrary” disciplinary treatments, as well as isolation.

Turkey changes its laws to protect investors

The Thomex scandal and its ensuing fallout were so significant that they drove the Turkish government to change its policies toward cryptocurrencies.

Immediately following news of Özer fleeing the country, the Central Bank of the Republic of Turkey banned crypto payments and prohibited payment providers from offering fiat on-ramps for crypto exchanges. The official notice outlawed “any direct or indirect usage of crypto assets in payment services and electronic money issuance.” Notably, the ban excluded banks, meaning that users can still deposit lira onto crypto exchange accounts using bank transfers.

The ban aimed to ensure financial stability, while other agencies like the Capital Markets Board (CMB) and the Financial Crimes Investigation Board (MASAK) moved to legitimize trading activities. In May 2021, MASAK amended money laundering and terrorism financing laws to include provisions for cryptocurrency.

By 2024, the “Law on Amendments to the Capital Markets Law” came into effect. This built on the initial changes in 2021, which included extensive consumer protection measures in addition to provisions on licensing and reporting.

These new measures, which also aimed to move Turkey off the Financial Action Task Force’s “gray list” of countries with inadequate Anti-Money Laundering measures, have in turn helped spur the local crypto industry.

Chainalysis’ “2025 Geography of Crypto Report” found that Turkey led the Middle East and North Africa in value received in crypto. Trading activity also spiked last year.

In the long term, the Thodex scandal may have led to increased crypto adoption in the country, but only after it rocked the Turkish crypto industry and left many investors out to dry. It also resulted in the imprisonment and death of its orchestrator and CEO.

Magazine: Grokipedia: ‘Far right talking points’ or much-needed antidote to Wikipedia?