Polygon Labs urges for a regulatory framework for the cryptocurrency protocol, blockchain, digital assets and general decentralized scene in the EU. Polygon proposed major amendments to Data Act, calling for clarification of the definition of “data” and no restrictions for DeFi d...
- Polygon Labs urges for a regulatory framework for the cryptocurrency protocol, blockchain, digital assets and general decentralized scene in the EU.
- Polygon proposed major amendments to Data Act, calling for clarification of the definition of “data” and no restrictions for DeFi developers.
Polygon Labs, one of the largest Web3 ecosystems, has published an open letter to representatives of the European Parliament, the Council of the European Union and the European Commission. The letter urges EU authorities to create a regulatory framework for the cryptocurrency protocol, blockchain, digital assets and general decentralized scene. The letter addresses the proposed changes to Article 30 of Data Act: Measures for a Fair and Innovative Data Economy, a crucial document for tech regulation in Europe.
1/Today @0xPolygonLabs published an open letter to the EU on Art. 30 of the #DataAct, which could have serious consequences for permissionless smart contracts. @Ledger has joined in proposing amendments to narrow Art. 30 to protect decentralized software development. Readpic.twitter.com/AZHGCm14sQ— Rebecca Rettig (@RebeccaRettig1) April 17, 2023
Polygon Labs’ proposed amendments aim to exclude 100% permissionless technologies and their creators from the scope of data regulation. Developers of permissionless systems such as on-chain or non-custodial services should not be held accountable for the processes and activities their code might be used in.
Polygon also called for the clarification of the term “party offering smart contracts” to exclude software developers of decentralized protocols and applications.
Regulators should clarify definition of “data”
The Polygon Labs’ letter also urges regulators to narrow the definition of data as smart contracts operate in a fully permissionless manner. No one can be charged for possible data abuse.
Crypto-asset services… provided in a fully decentralized manner should be excluded from the scope of Art. 30 of Data Act,
the letter says. Polygon Labs believes that these proposals will align the Data Act with existing regulatory documents and frameworks.
Polygon Labs partners with Ledger to prepare open letter
Ledger, a producer of hardware wallets, partnered with Polygon Labs to prepare the letter. Polygon Labs believes that the lack of clear regulations is slowing down innovation and growth in the industry. The letter suggests that proper regulations will provide more certainty to businesses, create a more stable investment environment, and better protect consumers.
Polygon Labs’ proposals aim to provide a framework for regulatory agencies to recognize the difference between permissionless and permissioned systems. It also aims to protect developers of permissionless systems from regulatory burdens.