Polygon Urges EU Article 30 Is In Opposition To Other EU Crypto Policies
Key Points:
- Polygon Labs and Ledger are lobbying EU legislators to change specific articles in the Data Act relating to smart contract restrictions.
- In a combined open letter, the corporations said that the present form of Article 30 of the Data Act would inhibit innovation and economic growth in Europe.
- According to the letter, Polygon urged European authorities to reply and comment on its update plan.
Polygon Labs stated in an open letter released Monday that European authorities must comprehend the distinction between permission and permissionless systems.
The firms argued in the letter that the present version of Article 30 of the Data Act would stifle innovation and economic progress in the European crypto sector because it does not account for the complexities of permissionless smart contract platforms.
Polygon would want to see the wording amended to account for how smart contracts work and the possible negative repercussions of requiring’safe termination or interruption’ of such smart contracts in permissionless systems, the team stated in the letter.
They went on to say that the Data Act aims to bridge the digital divide so that everyone may engage in these new systems; however, the present condition of Article 30 is likely to have the opposite effect and hinder equitable participation in these systems:
“We respectfully request that you consider the proposed revisions to Art. 30 discussed below to ensure that this new law does not inadvertently capture open, transparent and permissionless parts of emerging blockchain technology.”
According to the corporation, Article 30, as it presently exists, is in conflict with the European Union’s other crypto-related rules, most notably the markets in crypto-assets (MiCA) regulations in Europe, which are expected to go into effect this month.
According to Polygon, MiCA’s most recent draft removes fully decentralized crypto asset services from the policy’s requirements.
“Art. 30 should remain consistent with MiCA in keeping decentralized, autonomous systems out of regulatory scope,” the letter read.
Ledger, a crypto wallet provider, has also expressed support for Polygon’s planned Article 30 modifications, according to Polygon Chief Policy Officer Rebecca Rettig.
The corporations encouraged legislators to change the section so that it only applies to permissioned smart contract-based systems that are owned and operated by an identifiable natural person or corporate entity.
They also asked legislators to remove the word “party offering smart contracts” from the definition of software developers working on decentralized protocols and apps.
Since a smart contract must have the ability to be canceled, the present edition of Article 30 requires centralization. This would not be conceivable unless the system was controlled by a centralized body.
According to the letter, Polygon urged European authorities to reply and comment on its update plan.
The crypto sector has already raised worry about authorities’ response to DeFi. When the Office of Foreign Asset Control (OFAC) sanctioned the cryptocurrency mixing service Tornado Cash, crypto policy organizations reacted angrily, and Tornado Cash users banded together to fight the government, saying the program could not be sanctioned.
After the publication of the US risk assessment, which pointed to multiple significant breaches and crashes in DeFi in recent months, the Hong Kong SFC ordered DeFi projects to be registered and controlled. Virtual assets that engage in decentralized exchanges must apply for a license as well.
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
Author
News
Polygon Urges EU Article 30 Is In Opposition To Other EU Crypto Policies
Key Points:
- Polygon Labs and Ledger are lobbying EU legislators to change specific articles in the Data Act relating to smart contract restrictions.
- In a combined open letter, the corporations said that the present form of Article 30 of the Data Act would inhibit innovation and economic growth in Europe.
- According to the letter, Polygon urged European authorities to reply and comment on its update plan.
Polygon Labs stated in an open letter released Monday that European authorities must comprehend the distinction between permission and permissionless systems.
The firms argued in the letter that the present version of Article 30 of the Data Act would stifle innovation and economic progress in the European crypto sector because it does not account for the complexities of permissionless smart contract platforms.
Polygon would want to see the wording amended to account for how smart contracts work and the possible negative repercussions of requiring’safe termination or interruption’ of such smart contracts in permissionless systems, the team stated in the letter.
They went on to say that the Data Act aims to bridge the digital divide so that everyone may engage in these new systems; however, the present condition of Article 30 is likely to have the opposite effect and hinder equitable participation in these systems:
“We respectfully request that you consider the proposed revisions to Art. 30 discussed below to ensure that this new law does not inadvertently capture open, transparent and permissionless parts of emerging blockchain technology.”
According to the corporation, Article 30, as it presently exists, is in conflict with the European Union’s other crypto-related rules, most notably the markets in crypto-assets (MiCA) regulations in Europe, which are expected to go into effect this month.
According to Polygon, MiCA’s most recent draft removes fully decentralized crypto asset services from the policy’s requirements.
“Art. 30 should remain consistent with MiCA in keeping decentralized, autonomous systems out of regulatory scope,” the letter read.
Ledger, a crypto wallet provider, has also expressed support for Polygon’s planned Article 30 modifications, according to Polygon Chief Policy Officer Rebecca Rettig.
The corporations encouraged legislators to change the section so that it only applies to permissioned smart contract-based systems that are owned and operated by an identifiable natural person or corporate entity.
They also asked legislators to remove the word “party offering smart contracts” from the definition of software developers working on decentralized protocols and apps.
Since a smart contract must have the ability to be canceled, the present edition of Article 30 requires centralization. This would not be conceivable unless the system was controlled by a centralized body.
According to the letter, Polygon urged European authorities to reply and comment on its update plan.
The crypto sector has already raised worry about authorities’ response to DeFi. When the Office of Foreign Asset Control (OFAC) sanctioned the cryptocurrency mixing service Tornado Cash, crypto policy organizations reacted angrily, and Tornado Cash users banded together to fight the government, saying the program could not be sanctioned.
After the publication of the US risk assessment, which pointed to multiple significant breaches and crashes in DeFi in recent months, the Hong Kong SFC ordered DeFi projects to be registered and controlled. Virtual assets that engage in decentralized exchanges must apply for a license as well.
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
Other Posts
Related Posts
Latest
Best Cryptos with 1000X Potential: Qubetics Revolutionises Blockchain as Polkadot and Cosmos Shape the Future
Best Coins to Buy in December 2024: Qubetics Offer 630% ROI, Polkadot Delivers on Interoperability and Near Protocol’s Scalability is Talk of the Town
Press Release
Best Cryptos with 1000X Potential: Qubetics Revolutionises Blockchain as Polkadot and Cosmos Shape the Future
Best Coins to Buy in December 2024: Qubetics Offer 630% ROI, Polkadot Delivers on Interoperability and Near Protocol’s Scalability is Talk of the Town
