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Blockchain in Supply Chain Logistics –

The Regulatory Implications

Following on from the last Blockchain article in the December 2017 edition of BLOCKCHAIN
Linkline, this article will discuss the regulations and legal framework that will assist
and enable Blockchain advancement. By Gráinne Lynch and Ignacio Lopéz del Moral.

Blockchain and the Law - a legal perspective opportunity to be useful or enforceable when it comes to
With the implementation of two major pieces of EU blockchain applications.
legislation on the horizon (GDPR and eIDAS), what is the legal
framework within which implemented blockchain There may be limited applicability of the GDPR to blockchain
technology in the supply chain sector can operate? Ignacio technology, in the general sense. The reason lies in the fact
López del Moral ,a blockchain legal expert, explains. that, although storage, pickup, and transfer of data exists in
the blockchain, to our knowledge, the data is not strictly
What Regulations are Related to Blockchain personal and due to fragmentation personal data cannot be
in the EU? used to identify a natural person. Accordingly, the right to be
Transport and logistics are not immune to the impact that forgotten is not enforceable.
Blockchain Technologies are having on how businesses
operate in the sector. Therefore, it is important to be aware of Nonetheless, the set of obligations that inexorably must be
the laws in the European Union (EU) that deal with data observed by the recipient of private information is indeed a
protection, digital identity and payments. Depending on the completely different thing. Consequently, there is a
domain and application area, there may be additional high demand to have a prior identity check of the
legislation required which will need careful consideration for subject in question. This will need to be approved and
a blockchain implementation. certified by those in charge of security system nodes of the
blockchain implementation.
General Data Protection Regulation (GDPR)
The General Data Protection Regulation (GDPR) (EUGDPR, It is interesting to note that one of the most natural realms of
2016) regulates the processing and movement of personal application of blockchain technology is the transaction of
data. It applies to all companies processing and holding the data between parties that do not know each other. In many
personal data residing in the European Union, regardless of examples, it is not necessary to know the other party to verify
the company’s location. “Personal data is any information that the party is trustworthy and reliable. Therefore, in the
relating to an individual, whether it relates to his or her context of private blockchain for use in the supply chain
private, professional or public life. It can be anything from a logistics context, trusting the chain is deemed sufficient, and
name, a home address, a photo, an email address, bank thus there is no need to depend directly upon another party.
details, posts on social networking websites, medical
information, or a computer’s IP address," (EU, 2017). Electronic Identification, Authentication and
GDPR was intended to overhaul existing data protection trust Services (eIDAS)
legislation and bring it up to date with digital The EU has placed the Digital Single Market at the core of its
communications; however, it may have missed the current strategy and as part of this aims to improve secure

The Chartered Institute of Logistics & Transport 17