Founders of crypto projects usually anticipate the requirement to clear any financial services regulatory hurdles. In addition, they should consider the other regulations which might apply to the operation of their business model, their tech-stack or their sales practices.
Data Protection, Data Brokerage and Digital Identity
Data protection law has evolved since the General Data Protection Regulation (GDPR) in 2016. The GDPR applies to personal data, while recent laws such as the Data Governance Act protect other forms of data. The EU's proposed Data Act aims to further govern the use of data across the EU, including the operation smart contracts.
Blockchain's immutable and transparent nature means that blockchain entities should be aware of these data protection laws.
Entities acting as data brokerages, data warehouses or databases should also consider these data protection laws and how they interact with the laws governing digital identities and digital platforms.
'Internet of Things', Digital Operations, Cyber Security and Artificial Intelligence
Recent developments in artificial intelligence and computing capabilities have enabled a comprehensive and interoperable digital economy. This is turn has increased our online vulnerability, and a need for increased cyber awareness and security. Governments are trying to keep up by legislating for cyber crimes, and regulating the areas of digital services and operations, the 'internet of things' and artificial intelligence.
Entities leveraging emerging technologies and sales practices should remain aware of the relevant regulations and either stay outside scope, or comply.
The illustration below demonstrates the key regulations which crypto entities should consider.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.