The Council of the EU equated smart contracts with software for the Internet of things

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The Council of the European Union has agreed on an amendment to the law on data, according to which smart contracts should provide for the possibility of compulsory termination.

Смарт-контракты представляют собой хранящиеся in the blockchain there are programs that are executed automatically. This allows parties to the agreement to save time and not depend on the actions or decisions of a third party.

In the current version of EU law, smart contracts should be able to terminate or interrupt their activities.Thus, providing the ability to manage data and events by analogy with the control of software for home appliances, the Internet of Things (IoT), a smart home.Such as kettles, refrigerators, and similar equipment.

The amendment bill was adopted by the European Parliament by an overwhelming majority of votes and, according to the initiators of the amendment, "will allowdata to be freely transferred within the EU and across sectors for the benefit of business, researchers and public administrations."

In the crypto community, the future amendments have raised concerns about undermining the concept of decentralization and the fact that smart contracts are inherently required to be automated and immutable programs. The founder of the European Crypto Initiative, Marina Markezic, said that for most smart contracts, it canbe difficult, if not impossible, to comply with the new rules.

Earlier, the former Minister of Finance of Belgium, the economic representative of the right-wing political party ECR in the European Parliament, called
EU authorities to immediately ban cryptocurrencies.