Smart contract developers may soon have to comply with stricter regulations in the EU.
The European Union (EU) lawmakers have taken a decisive step towards ratifying the controversial European Data Act, a move that has raised concern within the cryptocurrency sphere.
The Data Act focused on ensuring fair industrial data usage and eliminating obstacles to equitable data sharing in data-centric services like the Internet of Things.
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However, the crypto community has voiced strong reservations, particularly concerning the proposed regulations around smart contracts and the ambiguity of the act.
Notably, the act includes stipulations for modifying the requirements of smart contracts, incorporating "kill switches" that facilitate their safe termination. The legislation also sets rules for smart contracts providing shareable data, encompassing “safe termination and interruption." It also builds protective measures to maintain trade secrets and prevent unlawful data transfers.
However, many in the crypto sector are concerned that this new EU law may compel smart contract developers to embed reset options to enable transaction termination or interruption. Such constraints may curb innovation or make it challenging for smart contracts in the crypto sector to meet compliance.
However, despite the concerns from the crypto community, the EU's Commissioner for Internal Markets, Thierry Breton, used Twitter to refer to the development as a “milestone in reshaping the digital space.”
The European Parliament initially passed the Data Act on March 14th. However, the final version has been a topic of ongoing debate among EU legislators.
The European Parliament has contended that this act will catalyze more extensive use of data resources to educate algorithms, potentially lowering service costs.
The progression of the European Data Act signals a significant shift in how data, particularly smart contracts, are handled in the European Union. As this legislation nears implementation, its potential impact on smart contracts, a fundamental element of the crypto industry, will undoubtedly be scrutinized.
In other news, a key political agreement on novel bank-capital regulations, including those concerning cryptocurrencies, was reached by the European Union (EU) on June 27th.
