GDPR ambiguity is the main worry for 74 percent of UK-based blockchain companies

GDPR ambiguity is the main worry for 74 percent of UK-based blockchain companies
Dec 3, 2018 by Rico Wise

The research performed by Digital Catapult, a digital innovation agency, found that almost three fourths of blockchain companies in Britain express their concerns regarding the regulatory problems, beating other problems, including the availability of technical, business, or legal competence.

Such regulatory difficulties involve the General Data Protection Regulation of the EU. With the GDPR policies providing unification of the policymaking landscape in Europe concerning the utilization and storage of personal information, the regulations have become a challenge for companies providing permissionless blockchain platforms, because data storage has no limitations to any specific geolocation.

Furthermore, the GDPR allows citizens to erase their personal information at any time, which conflicts the very nature of permissionless public blockchains that render any information tamper-proof after it has been recorded.

The ambiguity connected with ICO fundraising was another key point of worrying. The research mentions that the Financial Conduct Authority of the United Kingdom had previously stated that it would provide the respective initial coin offering regulations, however, the official guidelines are yet to be issued. According to the companies that took part in the research, the issuance delay has contributed to the level of ambiguity and thus impeded the ICO plans for some startups.

The ambiguity has also had an impact on the relationships between the blockchain companies and conventional financial institutions. According to the survey findings, which involved 264 distributed ledger technology companies, 54% of the firms pointed that they encountered obstacles upon attempting to set up a bank account with the most difficulties faced by crypto-related companies.