• European Union (EU) lawmakers reached an agreement to move ahead with the controversial European Data Act.
• The act is focused on the fair use of industrial data and removing barriers to fairly sharing data generated by a range of data-centered services, such as the Internet of Things.
• The act drew heavy criticism from the crypto community due to provisions for imposing altering requirements for smart contracts, including kill switches that allow them to be safely terminated.
EU Finalizes Controversial Smart Contract Kill Switch Rules Under Data Act
The European Union (EU) has passed an agreement to move ahead with the controversial European Data Act, which was first proposed in early 2022 and passed by the European Parliament on March 14.
Data Act Focused on Fair Use of Industrial Data
The act is intended to promote the fair use of industrial data and remove barriers to fairly sharing data generated by a range of data-centered services, such as the Internet of Things. This could lead to lower costs of services through training algorithms using shared resources.
Criticism from Crypto Community
However, this act has drawn heavy criticism from the crypto community due its provisions for altering requirements for smart contracts, which include kill switches that allow them to be safely terminated. This could restrict innovation or make it difficult for smart contracts in the crypto industry to comply.
Rules Established For Smart Contracts Providing Sharable Data
The act establishes rules for smart contracts providing sharable data, including “safe termination and interruption,” and incorporates safeguards to preserve trade secrets and prevent illicit data transfers.
Uphold Head: Smart Contracts One Step Closer To EU-Wide Regulation
Martin Hiesboeck, head of research at Uphold, noted earlier that smart contracts are one step closer to falling under EU-wide regulation within a broader strategy on data markets.