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Key Notes EDPB introduces guidelines addressing GDPR challenges posed by blockchain’s immutability and decentralization. Off-chain storage and advanced cryptography are recommended to safeguard personal data on blockchain systems. Data protection assessments and mechanisms for international data transfers are mandated for blockchain projects. . The European Data Protection Board (EDPB) has unveiled stringent new guidelines aimed at managing the processing of personal data within blockchain technologies. It emphasizes GDPR compliance amidst growing blockchain adoption. In a new move that took effect on April 14, the EDPB highlights the significant complexities of integrating blockchain with GDPR principles. These guidelines underscore the challenges in balancing blockchain’s inherent immutability, on one hand, and decentralization with personal data protection requirements, on the other. Off-Chain Data Storage The EDPB stresses avoiding direct storage of personal data on blockchain, recommending off-chain storage coupled with robust cryptographic methods to protect privacy. Advanced techniques, such as encrypted storage, salted hashes, and cryptographic commitments, are suggested to ensure that personal data cannot be readily traced or misused. The guidelines require thorough Data Protection Impact Assessments (DPIAs) to be conducted prior to implementing blockchain solutions. Controllers must rigorously document the necessity and proportionality of using blockchain over other technologies, detailing specific technical and organizational measures taken. “Blockchain technology offers innovative solutions but presents unique risks to privacy rights,” the EDPB stated. “Compliance with data protection principles must be non-negotiable.” Hard Time for International Transfers Special attention is drawn to international transfers, particularly those involving public blockchains with nodes outside the EU, which necessitate mechanisms such as Standard Contractual Clauses to comply with Chapter V of the GDPR. Moreover, the EDPB has explicitly reinforced obligations to uphold data subject rights, including rectification, erasure, and the right to object to automated decisions, despite the technical limitations of blockchain. The guidelines, currently open for…

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Filed under: News - @ April 30, 2025 11:26 am