European Union Data Act Set to Include Smart Contract Regulations
Scrutiny of reports published by European Union’s member states shows the Data Act features the bloc’s smart contract regulations. The reports published by the states in their Monday, March 27 reports harbour the text version of the previously agreed provisions by the European Parliament.
Inclusion of Debatable Text Version
The EU lawmakers observed that fulfilling the text version would render most smart contracts challenging to enforce. In particular, the lawmakers tore to the text version for giving smart contracts a kill switch in the amended EU Data Act.
The region’s council that draws representatives from the member states national governments reached an agreement on Friday, March 24, with proposals that echo those fronted by the region’s lawmakers in their EU parliament session. The inclusion of the text version is set to involve parliament and the council negotiating on the ultimate wording of the Data Act. The European Commission is set to mediate the two parties.
Proposed Legislations Integrates a Kill Switch to Smart Contracts
The proposed provisions captured in the Data Act give smart contracts the capability to either terminate or interrupt activities. The blockchain community perceives the leeway as delivering the kill switch, allowing smart contracts to undermine what would otherwise exist as automated and unalterable.
In his address when chairing the European Council’s session on Friday, March 24, Swedish Minister Erik Slottner lauded the proposed law for its capability to facilitate the free flow of data across the bloc. He added that data could not flow across various sectors, benefiting public administrators, society and businesses.
Extend of Coverage Is Ambiguous
The provisions under the new law would apply in various contracts obliging parties to avail data when exercising controls over smart-home appliances, including vehicles and fridges. Blockchain enthusiasts question the viability of such provisions as they need to state the extent of their coverage expressly.
Marina Markezic from the European Crypto Initiative lamented that retaining the text version as drafted by the EU parliament made the majority of smart contracts unable to fulfil the regulations.
Theirry Breton from the European Commission tore to the provisions lamenting that the version would hinder setting standards applicable to the smart contracts. The opposition by the senior commission portrays the likely emergence of active debate suggesting rejection of the lawmakers’ version.