Lawmakers Finally Took Data Privacy Seriously

Data privacy has long been seen as one of the major non-monetary usages of blockchain technology.

One of the reasons for that is regulatory uncertainty: Lawmakers around the globe are having a hard time catching up with data security challenges that the sprawling online economy poses.

In 2019, the regulators accelerated their efforts to reinforce and standardize data security policies amid the growing realization of the economic value of data in several key jurisdictions.

"As expected, many non-EU countries are following the EU's lead and implementing rules similar to GDPR in their jurisdictions. For example, Argentina, Australia and Brazil have all moved to implement data privacy laws that closely resemble GDPR.".

The Golden State moved to become the first to adopt its own regulatory framework, the California's Consumer Privacy Act, which Steinbeck calls the most comprehensive data privacy law in the U.S to date.

This has sparked concerns that data privacy landscape in the United States can soon become a patchwork of disparate laws, each one posing its own compliance requirements, said Yarno Vanto, a partner in the Privacy & Cybersecurity Group of the law firm Crowell & Moring.

By instituting a hefty price for allowing data breaches and mishandling user data, regulators signal that they treat privacy seriously.

New frontiersWhat are some big-picture takeaways that the 2019 privacy regulations trends hold for the blockchain industry? On its face, the general turn toward better protection of private data should be empowering for the space.

"I'm seeing renewed regulatory acceptance of encryption and a deeper understanding that privacy is important. I think the current trend of increased consumer data privacy protection bodes well for blockchain and projects that enable privacy."

At any rate, given the current pace, at which encryption technologies develop, as well as major regulators' newfound commitment to ensuring sufficient levels of personal data protection, 2020 is certainly poised to be an exciting year to watch regulatory developments in the privacy space.