EU Passes Controversial Data Act

Legislators from the European Union (EU) have come to an agreement on the contentious Data Act, which had previously been met with criticism from the crypto community. This deal was made official by EU’s Commissioner for Internal Market Thierry Breton, who declared it a “milestone in restructuring the digital landscape” in a Tweet.

The European Parliament passed the Data Act on March 14, and EU legislators were negotiating the final version of the legislation. The Data Act focuses on the appropriate use of industrial data and eliminating obstacles to the equitable sharing of data produced by data-driven services such as the Internet of Things.

The European parliament asserted that this act would motivate a heightened utilization of data resources to teach algorithms which would result in lower service costs. However, the act was widely censured by the crypto community as a result of the proposals concerning smart contracts and its lack of clarity.

Impact of the Data Act on Smart Contracts

The Data Act has regulations in place that dictate the requirements for smart contracts, including the inclusion of a kill switch to allow for their safe termination. The act sets out guidelines for parties sharing data via smart contracts, such as the ability to safely terminate and interrupt them, as well as safeguards to protect confidential information and prevent unauthorized data transfers.

Officials have informed the European Parliament committee that FTX has demonstrated MiCA should be quickly approved.

Many crypto advocates are concerned that the new EU legislation may inhibit innovation or make it difficult for smart contracts in the crypto industry to comply, as it would require developers to create reset options that would enable the termination or interruption of transactions.

Dr. Martin Hiesboeck, the leader of research at Uphold, remarked earlier that smart contracts are one step closer to being under the jurisdiction of a European Union-wide regulation as part of a larger strategy regarding data markets.

Cointelegraph attempted to contact Thierry Breton, the European Union’s Commissioner for Internal Market, for his opinion on the heated debate concerning smart contracts; however, no response was received by the time of publication.

Magazine: $3.4 Billion worth of Bitcoin found in a popcorn tin – The tale of the Silk Road hacker.

Categorized in:

Tagged in: