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News

EU Parliament Passes Data Act Including Kill Switch On Smart Contracts

March 15, 2023 - Around 2 mins mins to read

Key Point:

  • According to new EU Parliament rules, smart contract developers may be compelled to include “kill switches” in their contracts that enable activity to be reset.
  • Its primary goal is to create a framework in the EU for exchanging data produced by connected devices and associated services.
  • The legislation includes regulations to safeguard trade secrets and prevent unauthorized data transfers, as well as requirements for smart contracts between companies supplying sharable data.
On March 14, the EU Parliament passed legislation under the Data Act, which contains regulations on smart contracts and the internet of things (IoT).
EU Parliament Passes Data Act Including Kill Switch On Smart Contracts

The comprehensive legislation was designed to promote innovation by reducing obstacles to access to industry data. One of its clauses would require smart contracts to be changeable.

The EU Parliament overwhelmingly approved the Data Act on Tuesday, with 500 votes in favor vs. 23 votes against and 110 not voting. Although the law was not designed with the cryptocurrency company in mind, its section on smart contracts focuses on data from linked devices, popularly known as the Internet of Things.

The bill also includes regulations to preserve trade secrets and prevent illegal data transfers, as well as standards for smart contracts between companies supplying sharable data, such as safe termination and interruption.

The measure contains features designed to offer users greater control over information from smart devices, but the Web3 community is concerned. The new laws will go into effect in 2024, and businesses that wish to supply services or goods to EU-based customers must follow them.

EU Parliament Passes Data Act Including Kill Switch On Smart Contracts

According to Thibault Schrepel, a blockchain legal expert, the legislative wording is unclear as to who would be accountable for pressing the kill switch on a smart contract, which contradicts the basic concept that automated systems cannot be changed by anybody.

The Data Act will now go to trialogue talks, in which each EU institution will defend its position, and legislators will collaborate with national governments to reach an agreement on a final version of the legislation. The new laws will go into effect in 2024, and businesses that wish to supply services or goods to EU-based customers must follow them.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News

Data Act

Eu

EU Parliament

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

EU Parliament Passes Data Act Including Kill Switch On Smart Contracts

Key Point:

  • According to new EU Parliament rules, smart contract developers may be compelled to include “kill switches” in their contracts that enable activity to be reset.
  • Its primary goal is to create a framework in the EU for exchanging data produced by connected devices and associated services.
  • The legislation includes regulations to safeguard trade secrets and prevent unauthorized data transfers, as well as requirements for smart contracts between companies supplying sharable data.
On March 14, the EU Parliament passed legislation under the Data Act, which contains regulations on smart contracts and the internet of things (IoT).
EU Parliament Passes Data Act Including Kill Switch On Smart Contracts

The comprehensive legislation was designed to promote innovation by reducing obstacles to access to industry data. One of its clauses would require smart contracts to be changeable.

The EU Parliament overwhelmingly approved the Data Act on Tuesday, with 500 votes in favor vs. 23 votes against and 110 not voting. Although the law was not designed with the cryptocurrency company in mind, its section on smart contracts focuses on data from linked devices, popularly known as the Internet of Things.

The bill also includes regulations to preserve trade secrets and prevent illegal data transfers, as well as standards for smart contracts between companies supplying sharable data, such as safe termination and interruption.

The measure contains features designed to offer users greater control over information from smart devices, but the Web3 community is concerned. The new laws will go into effect in 2024, and businesses that wish to supply services or goods to EU-based customers must follow them.

EU Parliament Passes Data Act Including Kill Switch On Smart Contracts

According to Thibault Schrepel, a blockchain legal expert, the legislative wording is unclear as to who would be accountable for pressing the kill switch on a smart contract, which contradicts the basic concept that automated systems cannot be changed by anybody.

The Data Act will now go to trialogue talks, in which each EU institution will defend its position, and legislators will collaborate with national governments to reach an agreement on a final version of the legislation. The new laws will go into effect in 2024, and businesses that wish to supply services or goods to EU-based customers must follow them.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News

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