EU Set to Restrict Smart Contracts on Ethereum and Polygon – Lawyers Criticize
• The European Union has reached a consensus on the Data Act, which will regulate how businesses utilize corporate and consumer data.
• The act includes a contentious “smart contract kill switch” provision, raising concerns from the crypto and web3 community.
• Negotiations have been underway among EU lawmakers to finalize the bill, with Thierry Breton confirming its passage.
Data Act Achieves Consensus Among EU Representatives
The legislative representatives of the European Union have achieved consensus on new regulations referred to as the Data Act. This development will establish controls on how Big Tech and other businesses operating within Europe utilize corporate and consumer data.
Controversy Surrounding Smart Contracts Kill Switch
The primary objective of the act is to ensure an equitable utilization of industrial data and eliminate obstacles that hinder fair sharing of data generated by various services such as IoT. However, there has been concern raised in the crypto &web3 community due to a ‘smart contract kill switch’ provision included in the act that could negatively impact smart contracts within Europe.
Negotiations To Finalize Bill
Following its passage through Parliament on March 14th, negotiations commenced between EU lawmakers to finalize the bill. These negotiations resulted in tighter revisions being made regarding smart contracts in order to enhance individuals’ control over their data and promote innovation & development within Europe’s tech sector.
Confirmation From Thierry Breton
The agreement was confirmed by Thierry Breton, Commissioner responsible for EU’s internal market who tweeted; “Tonight’s agreement on #DataAct is a milestone in reshaping digital space…we are on way of thriving #EU data economy that is innovative & open-on our conditions”
Although still yet to be released publicly, reports confirm that this new law may cause restrictions for Ethereum & Polygon Smart Contracts in regards to advancement & development . Follow us for more updates!