The European Parliament recently approved the Data Act, which aims to regulate data from connected devices and the Internet of Things. Although not directly targeting the crypto industry, the act’s implications are far-reaching.
EU Parliament passes smart contract regulation under Data Act https://t.co/foXBOkECao
— The Block (@TheBlock__) March 14, 2023
Smart contracts are not exempt from the law, and Article 30 of the Data Act focuses on the “essential requirements regarding smart contracts for data sharing.” This means that all smart contracts must include access control mechanisms and trade secret protections in their design.
Additionally, the act allows for smart contracts to be terminated or interrupted if conditions demand it, potentially causing significant implications in the crypto world.
De-DeFi: EU’s Attempt at Regulating Crypto
It seems like the EU’s goal is to take the “De” out of “DeFi” by heavily regulating the crypto industry. While it’s essential to ensure consumer protection and prevent fraudulent activities, there’s a risk of stifling innovation in blockchain and crypto.
Let’s hope that the EU’s regulations won’t go overboard and that we’ll still be able to enjoy some of the humor and creativity that has come out of the crypto world. After all, who doesn’t love a good meme about hodling?
(EU Passes Data Act)