The European Parliament has passed legislation under the Data Act that includes provisions on smart contracts and the Internet of Things (IoT), crypto media outlet CryptoSlate reported on March 14.

The legislation aims to boost business model development and create new industries and jobs. Article 30 of the Data Act includes provisions on "essential requirements regarding smart contracts for data sharing". The new rules will come into force in 2024 and companies must adhere to them if they want to provide services or products to EU-based consumers.

The bill mandates that smart contracts must have the same level of protection and legal certainty as any other contracts generated through different means, including requirements around protecting trade secrets, data archiving, and ensuring that transactions can be interrupted and terminated as needed. Additionally, it mandates that smart contracts must be protected through "rigorous access control mechanisms at the governance and smart contract layers".

The bill's final version also reintroduces stringent compliance requirements for smart contract developers, such as a declaration of EU conformity, that were previously removed.

Source: CRYPTOSLATE