[Chapter-delegates] EU Data Protection Reform + cryptocurrencies

[Halbersztadt Jozef (jothal)]

1. I guess since Bitcoin is now officially considered property, data
processing here would fall under the clause "necessary for the
execution of a contract" in Article 6(1).
In practical terms, I would anyway safely assume the Data Protection
Authorities would be really hesitant to start any action against
virtual currencies and prefer to leave it to the banking and tax
authorities.

2. If there really was a problem with Bitcoin and DP law, it would
already be there under existing legislation. Nothing to do with the
reform.

Best
Józef Halbersztadt
-- 
'JotHal' jozef [dot] halbersztadt [at] gmail [dot] com
Internet Society Poland http://www.isoc.org.pl


2014-03-26 21:28 GMT+01:00 Elver Loho <elver.loho at gmail.com>:
> European Commission is preparing a (highly controversial) data
> protection reform package, which some of you may be familiar with.
>
> I was preparing for Friday's govt-organized meetup on the subject when
> I took a break to read the news and came across an article about
> Bitcoin's #2 user Hal Finney on Forbes and suddenly it clicked:
> Bitcoin's entire protocol and structure, with its public blockchain,
> are wholly and entirely incompatible with the data protection reform
> package.
>
> The public blockchain includes a ton of personal data, which cannot be
> deleted or removed, because the entire protocol of this
> cryptocurrency, and of other cryptocurrencies, is built on the
> assumption that this data cannot be deleted or removed. The underlying
> mathematics does not allow for a "right to be forgotten", nor for a
> revocation of consent or any such nonsense. Any services built on top
> of Bitcoin will invariably process huge amounts of personal data as
> defined by the proposed reform package.
>
> We're talking about a cryptocurrency with a current market cap of 7.3
> billion USD. As far as I was able to find out googling, nobody has
> ever even mentioned the data protection reform in the same article
> with any cryptocurrency.
>
> And while this may not be an issue when it comes to personal use of
> Bitcoin, I'm pretty sure that if Brussels starts to regulate Bitcoin
> from the standpoint of the upcoming data protection package, we can
> say goodbye to any and all kind of cryptocurrency innovation happening
> in the European Union, maybe globally.
>
> Has anyone on this list given some thought to this aspect of the data
> protection reform package or is there anyone else here, who is
> familiar with both the reform package and with cryptocurrency
> architecture to give an informed opinion on the subject?
>
> If I'm right, this argument might affect the fate of the reform
> package or of Bitcoin to a significant degree. I kinda hope I'm wrong.
>
> Best,
> Elver
> .ee
>
> elver.loho at gmail.com
> +372 5661 6933
> skype: elver.loho
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