EU’s Push for Data Control
The European Council and Parliament’s latest move on the Data Act propels further the legislation on non-personal data. As an extension to the 2020 Data Governance Act, it embodies the European Strategy for Data. With the necessary endorsements from the European Parliament and the Council, it’s on the verge of becoming a governing statute.
“Kill Switch” – A Boon or Bane?
For crypto enthusiasts and professionals, the Data Act isn’t just another piece of legislation. At the epicenter of discussions is the “kill switch” provision. This feature aims at halting or pausing automated data-sharing protocols, especially when security is at risk.
However, the storm brews from the Act’s unspecific terms regarding smart contracts. It blurs the lines between standard digital contracts and those anchored on distributed ledger technology (DLT).
Voices from the Industry
Marina Markežič, a representative of the European Crypto Initiative, voiced concerns over the conditions under which the “kill switch” might activate. Considering the indelible nature of blockchain, introducing this mechanism is fraught with complications.
Defi or decentralized finance, a cornerstone of modern crypto operations, also finds itself at a crossroads. Without definitive EU guidelines on defi, the Act’s role in this sphere remains a puzzle.
Erwin Voloder from the European Blockchain Association signaled potential roadblocks, particularly if the Act encompasses public networks. This could potentially shift the business tectonics within the EU.
Names like Polygon and Stellar, which are heavyweights in the crypto realm, haven’t stayed silent. Their call? A more demarcated and clearer Act.
Intersections and Interactions
Another looming question is the interplay between the Data Act and the MiCA regulation, expected to come into play by 2024.
A Call for Clarity
In essence, the Data Act underscores an undoubted need – precise regulations in the volatile world of crypto. But with more riddles than solutions, it beckons an earnest conversation between industry front-runners and European watchdogs.