EU backs Data Act with clause to shut off smart contracts
The European Parliament has voted to approve the Data Act — controversial legislation that includes a stipulation necessitating smart contracts have the ability to be terminated.
In a Nov. 9 press release , the parliament said the legislation passed 481 votes to 31 against. To become law, it will now need approval from the European Council — the heads of each of the 27 European Union member states.
The adopted Data Act outlines the requirement that smart contacts “can be interrupted and terminated” along with controls allowing functions that reset or stop the contract .
Highlighted excerpt of the Data Act relating to smart contracts. Source: European ParliamentAt its core, the Data Act would allow users to access data they generate from smart devices, with the European Commission claiming that 80% of such data collected is never used.
The Act’s critics have highlighted concerns about the smart contract clause, saying the definition is too broad and doesn’t provide clear details on when interruptions or terminations should occur.
Related: EU banking watchdog proposes liquidity rules for stablecoin issuers
A June open letter sent by EU blockchain advocacy bodies and signed by dozens of crypto firms also said the Data Act could see smart contracts that use data from public blockchains like Ethereum be deemed in breach of the law.
The European Commission has reportedly said , however, that the Data Act isn’t concerned with blockchain and fears the Act would make smart contracts illegal are unfounded.
Magazine: Crypto City Guide to Helsinki: 5,050 Bitcoin for $5 in 2009 is Helsinki’s claim to crypto fame
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
New Coin Listing – Crypto All-Stars Presale Hits $23.7 Million, 21 Hours Left
Crypto liquidations hit $1B as traders were ‘unprepared for bad news’
More than $1 billion has been liquidated in the crypto market over the past 24 hours as market participants were caught off guard by the strong momentum for crypto over the past 30 days. However, the analyst suggests the market downturn may be short-lived. “We’ve had such a bullish narrative over t
$SHIRO (CTO) Donates $1,000 USDT to the Neiro Foundation
A crypto collaboration to support animal welfare and global causes
Crypto liquidations hit $1B as traders were ‘unprepared for bad news’