EU Parliament Approves Data Act with Smart Contract Control: Implications for Crypto
The European Parliament has endorsed the Data Act (DA), a legislation regulating data practices in the EU. Notably, it introduces a controversial "smart contract kill switch" provision, allowing regulators to disable smart contracts deemed a threat to financial stability.
Key Points:
1. The Data Act regulates data collection, sharing, and usage in the European Union.
2. Designed to safeguard EU citizens' data privacy and security, it includes several provisions.
3. The contentious "smart contract kill switch" empowers regulators to deactivate contracts endangering financial stability.
4. Proponents argue it's necessary to mitigate risks posed by smart contracts, citing potential fraud and market manipulation.
5. Opponents claim the provision undermines crypto decentralization and may stifle innovation.
6. The DA is set to take effect in 2024.
7. Implementation details of the smart contract kill switch remain unclear, posing potential significant impacts on the crypto ecosystem.
In my personal opinion the DA's smart contract kill switch provision raises concerns about regulatory control and its impact on the decentralized nature of cryptocurrencies.
