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EU Approves Data Act with Smart Contract ‘Kill Switch’

November 12, 2023
in Business
EU Approves Data Act with Smart Contract ‘Kill Switch’
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http://fullycrypto.com/

By Philip Maina

23 hours agoSat Nov 11 2023 11:55:01

EU-Approves-Data-Act-with-Smart-Contract-‘Kill-Switch’

Reading Time: 2 minutes

The European Union has voted in favor of the Data Act which dictates that smart contracts should have a kill switch
The act was passed by 481 legislatures in the EU Parliament with only 31 voting against
The act now waits for a green light from the European Council to become law 

Legislatures in the European Parliament have voted in favor of the Data Act that requires smart contracts to incorporate a way for them to be switched off. The Act now heads to the 27-member European Council which will determine whether it’ll become law. The Act was passed by 481 legislatures with only 31 voting against it, an indication of how much lawmakers want to be involved in the running of the blockchain world.

Smart Contracts Need to Withstand Manipulation

According to the Act, smart contracts must have robust “access control” mechanisms in order “to withstand manipulation” by malicious actors. The European Parliament has said that the Act aims to “stimulate innovation by eliminating barriers to data access.”

The crypto community has however pushed back against the Data Act saying that it doesn’t clearly state the circumstances under which a smart contract can be paused or terminated. Others have also lamented the fate of smart contracts that draw data from public blockchains.

The Act’s approval comes three weeks after EU finance ministers adopted new rules allowing EU countries to share tax details of individuals interacting with cryptocurrencies and seven months after regulations governing the region’s crypto market were approved.

Government Agency Plans to Supervise Crypto Wallets

The Data Act adds to different ways governments want to have a say in the blockchain world. A few days ago, for example, the U.S. consumer protection agency disclosed plans to supervise crypto wallets.

Since the Data Act is yet to receive a final nod before becoming law, it’s to be seen whether the European Council will require more clarity on the smart contract kill switch.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FullCrypto – https://fullycrypto.com/eu-approves-data-act-with-smart-contract-kill-switch?utm_source=rss&utm_medium=rss&utm_campaign=eu-approves-data-act-with-smart-contract-kill-switch

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