Gdpr and cryptocurrency

Big data is big business. Facebook is hardly the only or even the biggest transgressor. It is inevitable that information mined for its commercial value will also fall into the hands of bad actors. The GDPR aims to restore some balance by giving individuals the right of control and power over who can access their personal data. Among its most important protections are:. Personal data is defined broadly and includes any information relating to an identified or identifiable natural person.



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WATCH RELATED VIDEO: Will GDPR kill blockchains?

Blockchain and GDPR: is a clash really inevitable?


I nternet of Business has published a number of recent reports on blockchain in the banking and financial services sector, with several recent solutions claiming to be GDPR compliant. Another GDPR question mark, which suggests that new forms of complex fraud could take place in the grey area between these irreconcilable demands.

The tension is centred on the ability that citizens — and, in turn, data controllers — need to permanently remove data from a given database. If personal information is stored on an immutable, open blockchain, in which each block of data contains a hash of the previous one, then that level of flexibility does not exist by design. Meanwhile, hashing can be used to verify that data on a chain has, or has not, been modified — because any altered data would result in a different hash.

However, this means that a hash itself could still be considered personal data if it could be linked to a person and traced across a distributed system, even if the original data is inaccessible. So do blockchain systems that claim to be GDPR compliant actually conform to the letter of the law, or merely the spirit?

In May, Poland became the first country to move banking records en masse onto blockchain. Biuro Informacji Kredytowej BIK , the largest credit bureau in Central and Eastern Europe, partnered with distributed ledger specialist Billon to deploy a blockchain system for storing and securing access to over million credit records, relating to 1.

Internet of Business asked Billon for clarification of how the blockchain could be made GDPR compliant with regard to the right to be forgotten. The company responded to us this morning:. The data and hash remain on the blockchain without alteration or deletion , however no party can ever read the original content again. Most significantly, Internet of Business believes that the right to be forgotten stipulates that data should be permanently deleted , and not merely rendered inaccessible.

As a result, it would be possible to infer that the original data still exists by comparing the hashes. In this sense, a hash could still be considered personal data. We have put this further point to the company and await its response. Our solution is digital, so in principle the entire right to be forgotten process can occur online. Some banks may require the client to call or physically come into a physical bank in order to prove their identity.

Meanwhile, other organisations may simply refuse to comply and resort to legalese and obfuscation of their own to justify retaining data. Bureaucracy is, after all, a known counterbalance to progress. Into the breach comes yet another new organisation, LegalThings.

Last month, it announced the launch of the LegalThingsOne platform, which it claimed could be a new blockchain-based digital backbone for all GDPR-compliant processing. Only the nodes selected by the parties involved have this chain, similar to other distributed systems, such as Git. To safeguard the integrity of these miniature chains, each event is anchored in the Waves public blockchain — a chain of miniature chains, in other words.

When requested, nodes can erase specific processes. And because GDPR states that data cannot be kept indefinitely — surely another existential challenge to blockchain systems — this happens automatically after a specified retention period. Our customers get the best of both worlds by keeping their information secure and private, while achieving consensus by the cryptographic hash of the encrypted metadata.

Clearly, GDPR was shaped during the timeframe when data was collected, processed, and stored in a centralised manner. With some data in the cloud, and other information in a computing mesh, a distributed network, at the edge, or — increasingly for big number-crunching tasks — once again on premise, the challenges facing GDPR compliance in many organisations are far more complex than they might appear. It is hard to avoid the impression that in some industries, such as financial services, there is a serious risk that processing complexity may become a deterrent to regulatory investigation — and that means any kind of investigation, including simple auditing.

In such a world, fraud and criminal behaviour may become much harder to detect, not easier, thanks to blockchain. Given the wholesale investment in these technologies across many industries, it may be that GDPR has to bend a little to accommodate the technology.

But a world in which data is obfuscated is very different to one in which it is erased. LOG IN. Recover your password. Internet of Business.



GDPR Will Weaken Cryptocurrency Crime Investigation Initiative

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Tom Cox and Andrew Solomon query the effectiveness of the GDPR when applied to technology behind platforms such as Bitcoin and Ethereum.

Block chain: Is the GDPR out of date already?

With a market capitalization of more than 40 billion USD in July , the business potential of Bitcoin and other blockchain technologies has begun to intrigue the financial industry and other big players. For example, the Hyperledger project, an open source project created to advance cross-industry blockchain technologies, was launched in early with the backing of firms like IBM and JP Morgan and has since grown to include over corporate and start-up members. Accepting cryptocurrency as payment A Bitcoin address may be considered pseudonymized personal information, just like an account number. The additional information needed to re-establish the associated identity exists outside of the blockchain, however. Instead, the onus will be on the businesses receiving Bitcoin to protect any correlation data which could be used to unmask individual payment transactions. While traditional payment information stays localized within a business, the pseudonymized transaction information on the blockchain is necessarily publicly available worldwide. It can, therefore, be considered that firms which accept Bitcoin incur a greater responsibility to protect their customer identity records.


What does the GDPR mean for blockchain technologies?

gdpr and cryptocurrency

The new General Data Protection Regulation by the European Union, which took effect on 25th May , will have a negative impact on the Internet security at large. It seems like the new law will be on their side as it will hinder investigations of cybercrime, phishing, theft, malware, ransomware, fraud and crypto-jacking. In the recent time, cybercriminals have focused on cryptocurrencies, while they also steal bitcoin, ethereum and ICO currencies. This figure excludes the million more of theft that goes unnoticed.

It contains stricter standards for collecting and processing personal data and may greatly impact how new technologies will be released.

Casper (CSPR), an Ethereum 3.0 before its time?

The hottest trends and short-term growth opportunities are working with non-fungible tokens NFTs , games and anything metaverse related. Cryptocurrencies Bitcoin, Dogecoin, Ethereum, etc. It is secured by encryption and is not dependent on banks; Instead, the currency is stored in digital wallets. The cryptocurrency is based on blockchain technology, which is essentially a digitally distributed public ledger. NFTs are also stored on the blockchain and are linked to digital files such as photos, artwork, videos, and audio. New York City Mayor Eric Adams is ahead of the curve: Hezoner has made good on his promise to take his first fortnightly salary in cryptocurrencies Ethereum and Bitcoin.


Bloomberg’s Mike McGlone: Bitcoin and Ethereum Remain In Early Adoption Days

I nternet of Business has published a number of recent reports on blockchain in the banking and financial services sector, with several recent solutions claiming to be GDPR compliant. Another GDPR question mark, which suggests that new forms of complex fraud could take place in the grey area between these irreconcilable demands. The tension is centred on the ability that citizens — and, in turn, data controllers — need to permanently remove data from a given database. If personal information is stored on an immutable, open blockchain, in which each block of data contains a hash of the previous one, then that level of flexibility does not exist by design. Meanwhile, hashing can be used to verify that data on a chain has, or has not, been modified — because any altered data would result in a different hash.

GDPR | News, press releases, inverviews from Cryptomathic. 02 May Cryptomathic Answers Compliance-Driven Call for Crypto Agility.

Bitcoin, along with many other cryptocurrencies, had a fantastic yet volatile run in , hitting all-time highs. Negative sentiments prevailed The price correction was imminent to test the support levels. Despite some bargain buying at lower levels by both institutions and retailers, many remained on the fence due to the overall negative sentiments in the financial markets. It will be interesting to see what direction the Indian government will take during the Budget session.


Blockchain, considered to be the greatest technological innovation since the internet, is currently also one of the most debated technologies. From a legal perspective, the technology raises many questions, in particular as diverse aspects of the blockchain are clashing with the EU data protection framework. Can these problems be overcome? A large part of the interest is due to the successful — and controversial — digital coins such as Bitcoin and Ethereum, some of the few large-scale implementations of blockchain to date. By this logic, we can say that Bitcoin is only one type of blockchain and blockchain is only one type of DLT. There is no single model for blockchain systems.

Security and risk managers must consider how GDPR applies to enterprise-sanctioned blockchain and personal data.

As a growing number of hotels, airlines, and restaurants announce their support for blockchain technology and cryptocurrencies like Bitcoin, the blockchain revolution is on its way. And as it enters more aspects of the travel industry, tech-savvy travelers will have more opportunities to use cryptocurrency in several industries around the globe. The blockchain is a digital ledger that can record cryptocurrency transactions. The blockchain is held and maintained by a network of computers, and these are usually in different locations. Blockchain allows travelers to exchange cryptocurrency with merchants anytime, anywhere. A travel marketplace with a decentralized platform featuring airlines, hotels, and other travel industry stakeholders can be set up using blockchain technology in the future.

In simple words Blockchain can be understood as a digital data bank which accumulates transaction data in a chain consisting of connected blocks. Those chains are stored decentralized by computers attending the network also called Nodes , following the principle of peer-to-peer. Any transactions are then to be confirmed by processors participating in the process of validation also called Miners by calculating a hash. Blockchain-technology is regarded as eminently transparent, extremely difficult to manipulate and traceable basically unlimited in time.


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  2. Mazurisar

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  3. Akirg

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