1. PixelPlaygroundHome
  2. Web3 News

Interpreting the Impact of EU Regulations on Smart Contracts

• Web3 News • 95 views

Interpreting the Impact of EU Regulations on Smart Contracts

On March 15th, Thierry Breton, the EU’s internal market specialist, told reporters on Tuesday that controversial EU regulations require “termination switches” to be set for certain smart contracts, which may limit the key ability to set standards for the industry.

EU official: The smart contract plan of the European Parliament limits the development of unified standards

Analysis based on this information:


The emergence of blockchain technology and smart contracts has revolutionized the way businesses handle digital transactions. As these systems become more integrated into our daily lives, it has become crucial to establish regulations that ensure their integrity and security. However, the recent announcement by Thierry Breton, the EU’s internal market specialist, has sparked concerns about the impact of EU regulations on the smart contracts industry.

According to Breton, the EU regulations require the inclusion of “termination switches” for certain smart contracts. Termination switches allow for the automatic termination of a contract if certain conditions are met. For example, if a smart contract involves an automated payment system, the termination switch may be activated if there is a breach in the payment process. This is a valuable tool for ensuring the security of transactions and protecting the interests of all parties involved.

However, the inclusion of termination switches may also limit the ability of the industry to set its own standards. Smart contract standards have been established by companies such as Ethereum, which is the leading platform for smart contracts. The inclusion of termination switches may force companies to conform to the EU regulations rather than to create their own standards. This may stifle innovation and limit the growth of the industry.

Moreover, the impact of these regulations remains unclear. It is unclear which types of smart contracts will require the inclusion of termination switches and how this will impact the development of new contracts. It may also increase the regulatory burden on the industry, hindering the speed and efficiency of the contract creation process.

In conclusion, the recent announcement by Thierry Breton highlights the need for regulations that balance security and innovation in the smart contracts industry. While termination switches are essential for ensuring the integrity of transactions, their inclusion may limit the industry’s ability to set its own standards and create new contracts. Thus, it is important to establish clear guidelines for the use of termination switches and ensure that they are implemented in a way that supports innovation.

Title: EU Regulations’ Impact on Smart Contracts

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/7041/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 03/15/2023 05:08
Next 03/15/2023 05:31

Recommended articles