Last month, the Connected Device Data Act was passed by the European Parliament. News that has been talked about within the crypto community. The latter believes that the law in question represents a threat to the smart contracts it takes into account.
Polygon calls for a review of Article 30 of the Data Law
Does the recent EU data law threaten crypto innovation? The answer is yes for Polygon Labs. The company behind Ethereum’s Layer 2 scaling has given its opinion on this.
In an open letter which she sent on Monday, April 17, Polygon called on the European Parliament to act. Otherwise, its regulatory initiative, which is otherwise legitimate, risks being“significantly inhibit innovation and economic growth in the European Union (EU).
Specifically, Polygon expects European parliamentarians to review the content of article 30 of the law in question. In its current wording, this provision does not provide for any authorization regime for smart contracts. Which is out of step with the MiCA crypto community regulations.
To remain consistent, an update of this provision is necessary. This, Polygon points out, should ideally apply to systems built on smart contracts authorized, owned and operated by a ” business “.In fact, the provision should specify that permissionless systems are excluded from certain regulations.
In its open letter, Polygon explains: “Polygon Labs is interested in this issue as we seek to ensure the responsible growth and development of permissionless blockchain-based systems on a global scale.”
The firm wishes, through these proposed modifications, “to ensure that this new law does not inadvertently capture open, transparent and permissionless parts of emerging blockchain technology.”
The question remains whether the European Parliament will follow suit. A reaction from the latter expected, possibly, in the wake of the entry into force of the MiCA crypto standard, the vote of which is scheduled for Wednesday, April 19.
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