The European Parliament has adopted a data-protection bill that concerns smart contracts. The Block reports.
The document does not explicitly reference the Bitcoin industry and instead concerns connected devices and the Internet of Things (IoT) sector.
However, experts fear that the bill’s provisions could affect the cryptocurrency space in software widely used in the DeFi sector.
According to the author of the draft, Pilar del Castillo Vera, it is aimed at “optimising existing business models and processes, speeding up the development of new ones, and thereby creating value and jobs”.
According to the document, smart-contract developers will be required to comply with EU-wide compliance rules.
“We regard Article 30 as a marginal provision applicable to smart contracts that facilitate data transfer using IoT products, rather than those deployed in DeFi applications,” said Natalie Linart, a lawyer at ConsenSys.
She allowed the further spread of the requirements to Web3 industry software.
Marina Markezich, head of the American company EUCI, said:
“It is very difficult, almost impossible, for most smart contracts today to comply with this article.”
Experts believe that the adopted rules could drive industry projects to relocate out of Europe. However, they acknowledge the relevance of the act’s enforcement practice.
The Block noted that lawmakers softened several of the initially proposed requirements.
Earlier in the EU Parliament, the final vote on the comprehensive cryptocurrency regulation bill was moved to April.