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Regulators in the European Union (EU) have unveiled new guidelines addressing the use of blockchain technology in the processing of personal data. The directive, aimed at ensuring compliance with the EU’s General Data Protection Regulation (GDPR), emphasizes the need for thorough evaluations of blockchain systems.
The European Data Protection Board (EDPB) released a comprehensive report outlining key considerations for organizations leveraging blockchain technology. According to the EDPB, assessments must address critical questions, including whether blockchain-stored data contains personal information, the necessity of blockchain for such processing, the type of blockchain to be used, and the technical measures implemented to safeguard data.
The report highlights that blockchain systems are not exempt from GDPR requirements and must incorporate mechanisms for data deletion. In cases where deletion protocols are not inherently designed into the blockchain, the entire network may need to be dismantled to comply with GDPR’s principle of storage limitation.
The EDPB’s guidance has sparked concerns among industry experts. JAMES SMITH, Special Projects Lead at the Ethereum Foundation, warned that the new regulations could pose existential challenges for public blockchains like Ethereum. In a LinkedIn post, SMITH stated, “The very architecture of public blockchains is being challenged. Without significant pushback, we’re facing a regulatory framework that fundamentally misunderstands decentralized technology.”
For additional insights, refer to the full EDPB Report or visit the Ethereum Foundation’s official LinkedIn page.
Source: EDPB Report
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