Parity ICO, another EU privacy victim
Altcoin

Parity ICO, another EU privacy victim

By Fabio Lugano - 22 May 2018

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Parity ICO? The service of the wallet dedicated to the subscription of token sales must shut down because it does not conform with the GDPR. Vitalik Buterin is also annoyed

Parity ICO, another EU privacy victim. Leggi qui l’articolo in Italiano.

The European privacy regulation that will come into force this week, called the GDPR, is claiming many victims among Internet services and cryptocurrency projects.

The Parity wallet, until now famous above all for having lost $150 million in crypto, had launched an initiative called Parity ICO Passport Service, a system to simplify all AML (anti-money laundering control) and KYC (know your customer) procedures.

It was a system, based on the platform of the multisig wallet Parity, able to collect and manage data, simplifying the life of those who wanted to subscribe to an ICO, avoiding the need to do dozens of AML and KYC procedures.

Unfortunately, however, the GDPR legislation is so complex that it has posed major problems of interpretation, such as to prevent the continuation of the service, as communicated by the company:

We are trying to resolve the uncertainties and make PICOPS compliant with the GDPR. Keeping it useful. Unfortunately, as matters stand, the solution we have identified is to restrict the service to a very limited number of services. For this reason, and because of a large number of resources needed to make it legally correct and because PICOPS is not part of our technological core, we decided to stop the service despite the needs and demand of the market“.

This is not the first service shut down by the European GDPR regulation, which is extremely complex, with the need to completely delete the data and to request them each time, even if already registered and already approved.

In addition, we recall that the penalties are huge: largest figure between 4% of turnover and 20 million euros, regardless of turnover. It’s not worth the risk.

This did not escape Ethereum guru Vitalik Buterin, who condemned this useless complexity in a tweet:

Parity ico
Vitalik Buterin condemned this useless in a tweet

“This is very sad, A potentially very useful service in the Ethereum ecosystem discontinued due to GDPR issues.”

Fabio Lugano
Fabio Lugano

Graduated with honors from Bocconi University, Fabio is a consultant for companies and wounded shareholders of the Banche Venete. He is also the author of "Scenari Economici", and lecturer and analyst of cryptocurrencies since 2016.

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