In a recently published paper, Crypto Legal and the Indian Blockchain Forum discussed the impact of data protection legislation on blockchain systems.
New Delhi,Has been updated: December 13, 2022 16:11 IST
What impact will the Data Protection Bill 2022 have on blockchain technology?
Nidhi Bhardwaj: The Federal Ministry for Electronics and Information Technology released the Digital Data Protection Bill 2022 for public consideration on November 18. Experts said the new bill was better than the previous one in terms of lifting restrictions and ease of implementation. But does this apply to the blockchain industry as well?
Following the introduction of the bill, Crypto Legal, a legal, regulatory and policy advisory body for blockchain companies based in Bangalore, released a paper on December 12th. The company has released this paper in collaboration with the Indian Blockchain Forum. The Indian Blockchain Forum discussed the impact of the bill on the blockchain industry in this paper. It was created by Purshottam Anand, founder of Crypto Legal, along with his Anshuman Singh, Research and Policy at Crypto Legal, and Sharat Chandra, Vice President of Earthid’s Decentralized Identity Platform.
What does this paper emphasize?
The published paper highlights technology neutrality and specific blockchain issues, as well as key areas of the bill affecting blockchain. In the study, the authors emphasized aspects of “data fiduciary,” “data anonymization,” “right to erasure,” and “international transfers.”
Referring to data trustees, the paper’s authors say, “Current legislation fails to focus on the challenges facing blockchain technology.” A data trustee is a person who decides how and why personal data is processed. And the problem is the lack of a blockchain that allows an individual or group of people to always be in control of their data, as it is based on decentralized technology.
“This poses a problem for the bill that requires the identification of data trustees responsible for data. says.
The authors focused on the need to protect data on the blockchain with the above issues. “Technologies such as anonymization, pseudonymization and encryption are important for ensuring the security of data on blockchains, but the bill does not provide adequate guidance on their use,” they further wrote. I’m here.
“To support the point about international remittances, the current bill does not adequately address them,” said the authors. “Because blockchain is non-jurisdictional, securing international transfers through authorized channels while adhering to important disclosure standards will be a priority. It continues to say it is based on a difficult ‘notice in fiat currency’ paradigm,” the report said.