The European Parliament (EU) has pass New regulations under the March 14 Data Act, including provisions for smart contracts and the Internet of Things (IoT).
Passed by 500 votes to 23 against, the bill seeks to foster the development of business models to create new industries and jobs. Article 30 The Data Act includes provisions on “essential requirements related to data-sharing smart contracts.”
The new regulations will come into effect in 2024, and every company must comply if they want to provide services or products to EU users.
Smart Contract Supervision
Regulations around smart contracts are not specific to the cryptocurrency industry, but instead focus primarily on contracts that facilitate the transfer of data for IoT products, as well as the service levels of manufacturers, suppliers and suppliers.
The aim is to develop a framework for sharing data generated by connected devices and related services in the EU. However, there are concerns that the regulation of smart contracts could eventually impact the DeFi and crypto industries if the scope and operations are not clearly defined.
Article 30 states that smart contracts have the same level of “legal protection and certainty” as “any other contract created by other means.” The bill also includes requirements to protect trade secrets, store data and ensure transactions can be interrupted and terminated if necessary.
Additionally, smart contracts must be secured by “strict access control mechanisms at the management and smart contract layers.” Under the new rules, smart contracts will adhere to a “uniform standard” as defined in the Data Act.
The final version of the bill also reintroduced previously removed strict compliance requirements for smart contract developers — such as the EU declaration of compliance. According to the Act:
“Smart contract provider, or in the absence of a smart contract, a person whose commercial, business or professional activity involves the implementation of a smart contract for others in the context of a supply agreement. The data provider will assess compliance with the basic requirements”.
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According to Cryptoslate