European Parliament approves controversial data law
Key Takeaways
- The European Parliament has approved a data law that includes smart contract suspension and termination provisions.
- The law aims to give users access to data on smart devices and address the issue of underutilization of such data.
- Criticism of the Data Act focuses on the vague definition of smart contract provisions, and the European Commission is confident that the law does not make smart contracts illegal.
The European Parliament has taken a decisive step towards digital data regulation by approving the Data Act.This bill has sparked controversy due to its smart contract provisions.
According to a press release dated November 9, The Data Act received an overwhelming majority of votes.There were 481 votes in favor and 31 votes against. This bill is currently Awaiting European Council approval It will be enacted into law.
Did you know?
Do you want to become smarter and richer with cryptocurrency?
Subscribe – We post new cryptocurrency explainer videos every week!
At the heart of the data law are controversial requirements. Smart contracts have a “suspend and terminate” function. We’ve also introduced controls for the ability to reset or stop these contracts.
The main goals of this bill are: Helps users access and utilize data generated from smart devices. The European Commission has pointed out that a significant portion of the data collected, estimated at 80%, is not used.
However, the smart contract provisions It was criticized for its broad definition and lack of clarity. Regarding the specific circumstances in which suspension or termination of the contract must be effected.
EU blockchain advocacy groups and a coalition of numerous cryptocurrency companies expressed their concerns in an open letter in June. They warned: The Data Act has the potential to create smart contracts utilizing data from public blockchains, such as Ethereum, in violation of the law..
In response to these concerns, the European Commission assured: The Data Act does not target blockchain technology.. This reassured stakeholders that fears about legislation outlawing smart contracts are unfounded.
This is not the first cryptocurrency-related legislation approved by the EU this year. Last June, the EU enacted the Markets for Cryptocurrency Assets (MiCA) framework, making it official law.
Gile is a market sentiment analyst who understands which public events create which emotions. Her experience investigating Web3 news and public market messaging, including cryptocurrency news reporting, PR, and social network streams, will be invaluable to her role leading the cryptocurrency news editorial team.
As an intelligent expert in the field of Public Relations, she works with her team to identify real VS fake news patterns and aims to provide her results to everyone searching for unbiased news and events happening in the FinTech market. Her expertise is in informing the public of the latest reliable and informative Web3 announcements.
When she’s not investigating the credibility of mainstream stories, she spends her time enjoying the terrace views and meticulously maintaining her outdoor environment.
