Will Car History Registry ICO’s like carVertical and VinChain be affected by the General Data Protection Regulation (GDPR) within the European Union?

The General Data Protection Regulation (GDPR) was adopted by the European Parliament, Council off the European Union and the European Commission on the 27th of April, 2016, and it will not become an issue until the end of the 25th of May 2018, when it is to become enforceable. Since the regulation does not require the European governments to pass any additional enabling legislations, the GDPR is aimed to become directly binding and applicable at the set forth date.

How will companies such as carVertical and VinChain, offering blockchain solutions for the decentralization and storage of car history registries, be affected by the implementation of this regulation?

In this particular instance, carVertical as a European based company, by default finds itself to be in a favourable position. carVertical’s legal department has half a decade of legal expertise in the areas of data protection, intellectual property and ID matters within the European Union, which most definitely will help the blockchain focused company get a head start on the implementation of adjustment necessary to adhere to the GDPR coming into function by the end next month.

On one hand, the enactment of the GDPR should make the collection of private individual data easier for companies such as carVertical and VinChain, since it aims at providing a unifying solution to private data management for all member states of the European Union. On the other hand, since the GDPR aims to strengthen and unify data protection for all individuals within the EU, citizens will have the right to contest any decisions regarding their own private and personal data, based solely on algorithmic basis. In simpler words, if an algorithm chooses to process an individuals private data in a certain way, that particular individual has the right to contest the algorithms decision with the help of a judicial process. This could ultimately lead to additional expenses for the parties responsible for the storage and maintenance of the private data, by having to cover the cost of human labour involved in the processing of judicial matters.

While the GDPR’s primary aim is to relinquish control over personal private data back to the EU citizens, and by unifying personal private data regulations within the EU to simplify the regulations to which international businesses must adhere, it also poses new obstacles for non-EU based companies by creating a data protection compliance regime with high monetary penalties.

In addition to the threat of high penalties for non-compliance with the new regulations, conducted studies suggest that involved companies will need to make additional significant investments in order to comply with the consent, data mapping and cross-border data transfer requirements under the GDPR (“http://f.datasrvr.com/fr1/416/76165/IAPP_GDPR_and_Privacy_Shield_Survey_Report.pdf).

As mentioned earlier, being located within the European Union carVertical finds itself in a good position to handle the stringent regulatory measures imposed by the GDPR, while other companies entering from outside of the European Union will may face additional obstacles in handling the demands set forth by the new regulatory measures.
In addition to the countless number of legal tasks ranging from the drafting of terms and conditions, reviewing of partnership agreements and the legal matters surrounding the protection of copyright trademarks, just to make a few, the carVertical’s legal team is working hard on making sure that the company’s already existing large collection of private data and its processing is in compliance with the GDP regulations.

The creation of hybrid blockchains such as those implemented by carVertical and VinChain pose many challenges but also create massive opportunities for the future. It will definitely be interesting to follow the further development of this new industry.

For further read on private, public and hybrid blockchains please read my earlier article: https://steemit.com/blockchain/@mediumjack/blockchain-public-private-or-hybrid

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