EDSA Issues New Guidelines on Blockchain: Balancing Data Protection and Technological Advancement
April 17, 2025
On April 16, 2025, the European Data Protection Board (EDSA) issued new guidelines regarding the use of blockchain technology, highlighting the need for compliance with data protection principles.
The EDSA's guidelines stress the complexities and uncertainties associated with the decentralized nature of blockchain, particularly concerning personal data storage.
According to the EDSA, personal data should generally not be stored on a blockchain if it conflicts with established data protection principles.
The guidelines emphasize that individuals' rights, such as the right to rectification, erasure, and to be forgotten, must be respected, necessitating thorough evaluations of any proposed blockchain solutions.
While blockchains ensure data integrity and traceability, their immutable nature poses challenges for retroactive corrections or deletions, requiring careful assessments of privacy risks.
During the design phase of blockchain projects, responsible parties must ensure that personal data can be effectively anonymized to comply with deletion requests.
The EDSA recommends conducting data protection impact assessments when blockchain use poses significant risks to individuals' freedoms, promoting proactive privacy measures.
The EDSA highlighted the inherent complexity of blockchain technology, which complicates the modification or deletion of stored information, raising concerns about individual rights.
If the implementation of blockchain is deemed overly complex or risky, the EDSA advises considering alternative technologies for data management.
Blockchain operators are urged to protect personal data, ensuring it cannot be accessed by unauthorized individuals and can be anonymized upon deletion requests.
The discussions among European leaders and the EDSA's guidelines underscore the urgent need for a balanced approach to digital governance that safeguards individual rights while fostering technological advancement.
In the context of digital sovereignty, Prof. Dr. Louisa Specht-Riemenschneider emphasized the importance of Europe asserting its digital independence amid geopolitical tensions with the U.S. and China.
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