The European Parliament has just passed a draft data protection bill that allows for the regulation of smart contracts.
The document reportedly does not directly refer to the cryptocurrency sector, but rather to connected devices and the Internet of Things (IoT) sector.
However, experts fear the provisions of the bill may affect the crypto field in terms of the software that is widely used in the DeFi field.
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According to the author of the bill, Pilar del Castillo Vera, it aims to "optimize existing business models and processes, boost the development of new ones, and by doing so creating new values and jobs."
According to the document, smart contract developers will have to comply with general compliance rules in the EU.
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Natalie Linhart, a lawyer at ConsenSys, has said:
"We see Article 30 as a marginal provision applicable to smart contracts facilitating data transfers involving IoT products — not those deployed in DeFi applications."
Experts believe the adopted rules may lead to the exodus of industrial projects from Europe. However, they recognize the relevance of the act's enforcement practice.