2018/2085(INI) | [ParlTrack]

Draft opinion
Paragraph 1

Amendment 10 #

Draft opinion
Paragraph 2

2. Points out the need to ensure that the use and implementation of blockchain technologies fully respect fundamental rights, in accordance with the Charter of Fundamental Rights and the Treaty on the Functioning of the European Union (TFEU);deleted

Amendment 11 #

Draft opinion
Paragraph 2

2. ~~Points out the need to ensure that the use~~Welcomes the fact that the report recognises the challenge posed by the relationship between blockchain technologies and the implementation of ~~blockchain technologies fully respect fundamental rights, in accordance with the~~the EU data protection framework, namely the General Data Protection Regulation’s (GDPR), and recalls that, as a result, this relationship might reveal a clash between the protection of fundamental rights, on one hand, and the promotion of innovation on the other hand that has to be addressed in the report; suggests the need to ensure that the blockchain must be fully in conformity with the EU’s data protection framework and fully respects the principles set out in EU law, in particular in relation to the processing of personal data as a fundamental right under Article8(1) of Charter of Fundamental Rights and Article 16(1) of the Treaty onf the Functioning of the European Union (TFEU);.

Amendment 12 #

Draft opinion
Paragraph 2 a (new)

2a. Stresses, furthermore, also resulting from that clash (between the protection of fundamental rights, on one hand, and the promotion of innovation on the other hand) that blockchains by no means automatically support data sovereignty but rather must be purposefully designed to do so, given that blockchains can also present risks for data protection.

Amendment 13 #

Draft opinion
Paragraph 3

3. Underlines that, if adequately designed, blockchains can ~~share the goal of the General Data Protection Regulation by giving data subjects more control over his/her data~~be in line with the “data protection by design” provisions in the General Data Protection Regulation (GDPR); recalls, however, that the possible clash between the protection of fundamental rights and the promotion of innovation has to be addressed; notes that a wide range of applications can allow different levels of transparency, raising the need of compliance with the EU law; stresses also that personal data in a blockchain are normally not anonymous, which makes them personal data within the scope of the GDPR; insists on the need to further improve blockchains in order to make them fully compatible with Union law where they are used for processing personal data;

Amendment 14 #

Draft opinion
Paragraph 3

3. Underlines that, if adequately designed, blockchains can share the goal of the General Data Protection Regulation by giving data subjects more control over his/her data; ~~recalls, however, that the possible clash between the protection of fundamental rights and the promotion of innovation has to be addressed;~~ notes that blockchain allows for pseudonymisation procedures to ensure the secure data storage of personal information in line with obligations set out in the General Data Protection Regulation; recalls, however, that the General Data Protection Regulation may not be fully compatible with recent technological developments and that regulatory flexibility is required to enable and reap the potentially revolutionary benefits of digital innovation;

Amendment 15 #

Draft opinion
Paragraph 3

3. Underlines that, if adequately designed, blockchains can share the goal of the General Data Protection Regulation by giving data subjects more control over his/her data; recalls, however, that the possible clash between the protection of fundamental rights and the promotion of innovation has to be addressed; urges the European Data Protection Board (EDPB) to provide guidance on how to ensure that blockchain-type technologies comply with EU rules;

Amendment 16 #

Draft opinion
Paragraph 3

3. ~~Underlines~~Recalls, therefore, that, if ~~adequate~~properly designed, blockchain~~s can share the goal of the General Data Protection Regulation by giving data subjects more control over his/her data~~ systems can pursue the GDPR’s underlying goal of giving a data subject more control over her/his data as long as a compromise is found in order to reconcile legal certainty of data protection with the promotion of innovation and with effective means of data protection; recalls, however, that the possible clash between the protection of fundamental rights and the promotion of innovation has to be addressed;.

Amendment 17 #

Draft opinion
Paragraph 3

3. Underlines that~~, if adequately designed, blockchain~~ blockchain technologies can share the goal of the General Data Protection Regulation by giving data subjects more control over ~~his/~~their data; rec~~alls, however, that the possible clash between the protection of fundamental rights and the promotion of innovation has to be addressed~~ommends that blockchains and applications built on top of a blockchain follow the privacy by design principle and should only store unintelligible data;

Amendment 18 #

Draft opinion
Paragraph 3 a (new)

3a. Underlines that future blockchain applications should implement mechanisms that protect the person data and the privacy of users and ensure that data can be fully anonymous; calls on the Commission and the Member States to fund research and innovation, in particular academic research, on new blockchain technologies that are compatible with the GDPR and based on the principle of data protection by design, such as zk-SNARK (zero-knowledge Succinct Non-Interactive Arguments of Knowledge);

Amendment 19 #

Draft opinion
Paragraph 3 a (new)

3a. Takes the view that, in order to avoid infringement of the fundamental right of protection of personal data, blockchain technology should not be used for processing personal data until the user organisation is in a position to guarantee compliance with the General Data Protection Regulation and specifically to ensure observance of the rights of rectification and erasure of data;

Amendment 2 #

Draft opinion
Paragraph 1

1. Underlines that blockchain ~~represents a new paradigm of data storage and management, the rise of which poses challenges in terms of data protection and transparency,~~, as the most disruptive technology since the advent of the Internet, is capable of decentralising forms of human interaction and markets, banking and international trade. Hence, as such disruptive force, the rise of blockchain represents a new paradigm of data storage and management that may be equally transformative from the perspective of data protection and transparency and, therefore, poses challenges regarding the protection of fundamental rights and exponentially increases ~~the~~ risks of money laundering, of the capture of the financial system by organiszed crime and of the financing of terrorism;

Amendment 20 #

Draft opinion
Paragraph 3 b (new)

3b. Highlights that users of blockchains may at the same time be data controllers for the personal data that they upload onto the ledger, and data processors by virtue of storing the full copy of the ledger on their own computer;

Amendment 21 #

Draft opinion
Paragraph 3 c (new)

3c. Notes that the immutable nature of some blockchain technologies is likely to be incompatible with the "right to erasure" set out in Article 17 of the GDPR, where the blockchain contains personal data;

Amendment 22 #

Draft opinion
Paragraph 3 d (new)

3d. Notes with concern that the proliferation of copies of data in a blockchain is likely to be incompatible with the data minimisation principle set out in Article 5 of the GDPR, where the blockchain contains personal data;

Amendment 23 #

Draft opinion
Paragraph 3 e (new)

3e. Calls on the European Data Protection Board and the European Data Protection Supervisor to issue guidelines and opinions on the compatibility of blockchain technologies with Union law;

Amendment 24 #

Draft opinion
Paragraph 4

Amendment 25 #

Draft opinion
Paragraph 4

4. Notes with concern the lack of any reference to the serious implications, which might be positive, but could also be detrimental, of blockchain technology in relation to the fight against money laundering and to countering the financing of terrorism, if such technology is appropriated by organised crime; recalls the link between blockchain and cryptocurrencies and its several implications for financial crime, money laundering and tax evasion also in the context of international trade;

Amendment 26 #

Draft opinion
Paragraph 4

4. Notes with concern the lack of any reference to the serious implications, which might be positive, but could also be detrimental, of blockchain technology in relation to the fight against money laundering and to countering the financingCalls on the Commission to take the lead on the promotion and innovation of blockchain technologies, including in specific sectors that can bring about additional benefits across the EU, such as in the case of the EU's trade policy; deems that any utilisation of blockchain technologies should be anticipated by the delineation of what will be stored on and off t~~errorism, if such technology is appropriated by organised crime~~he chain, with personal data being stored off the chain;

Amendment 27 #

Draft opinion
Paragraph 4

4. Notes with concern the lack of any reference to the serious implications~~, which might be positive, but could also be detrimental, of blockchain technology~~ in relation to the fight against money laundering and to countering the financing of terrorism~~, if such~~ should blockchain technology isbe appropriated by ~~organised crime~~criminals;

Amendment 28 #

Draft opinion
Paragraph 4 a (new)

4a. Calls on the Commission to also look into the application of blockchain technologies, which if appropriately applied, it can reduce the risk of money laundering due to its immutability feature such as by the verification of identity documents with each individual recorded electronic transaction.

Amendment 29 #

Draft opinion
Paragraph 4 a (new)

4a. Underlines that if adequately designed and specifically fashioned to achieve that objective, blockchains can share the goal of GDPR of giving a data subject more control over her/his data.

Amendment 3 #

Draft opinion
Paragraph 1

1. Underlines that blockchain represents a new paradigm of data storage and management, the rise of which poses challenges in terms of data protection and transparency, and exponentially increases the risks of money laundering, the capture of the financial system by organised crime and the financing of terrorism; and that an appropriate level of monitoring by the national regulators is therefore required; emphasises, however, that this must not undermine the basic principles of data securitisation through the use of encryption, of disintermediation and of blockchain decentralisation, which guarantee the forgery-proof nature of the system and thus ensure its reliability;

Amendment 30 #

Maria GRAPINI

Draft opinion
Paragraph 4 a (new)

4a. Stresses the need to ensure that blockchain systems and technologies incorporate firewalls to prevent encroachment by organised crime networks;

Amendment 31 #

Draft opinion
Paragraph 4 b (new)

4b. Underlines, furthermore, that when this goal is not there, all the decentralised structures - such as blockchains - are potentially more vulnerable to governmental or corporate surveillance than their centralised counterparts.

Amendment 32 #

Draft opinion
Paragraph 5

5. Stresses the need to consider the implications, both positive and negative, of blockchain technology in view of the goals of Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 2018 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing1 , which brings providers of exchange services between virtual and fiat currencies, as well as custodian wallet providers, within its scope; notes that this Directive extends the EU’s regulatory reach to prevent criminal organisations from exploiting the anonymity of virtual currency-based transactions, and to improve national regulators’ monitoring of the users of virtual currencies, for whom blockchain may be an enabling technology. _________________ 1deleted OJ L 156, 19.6.2018, p. 43.

Amendment 33 #

Draft opinion
Paragraph 5

Amendment 34 #

Draft opinion
Paragraph 5

5. Stresses the need to consider the implications, ~~both~~either positive ~~and~~or negative, of blockchain technology in view of the ~~goals of~~objectives of the Directive (EU) 2018/843 of the European Parliament and of the Council, of 30 May 2018, on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing1, which expressly brings providers of exchange services between virtual currencies and fiat currencies~~, as well as custodian wallet providers, within its scope; n~~ (i.e. platforms used to exchange money for cryptocurrency), custodian wallet providers as well as coin investors and coin providers, into scope; underlines, in this context, that encryption can also be used by criminals, which is basically what happens in the context of cryptocurrencies as well as the use of cryptocurrencies for money laundering or terrorist financing is a factor complicating law enforcement authorities’ criminal investigations. Notes that this Directive extends the EU’s regulatory ~~reach~~perimeter to prevent criminal organiszations from exploiting the anonymity of virtual currency-based transactions, and to improve national regulators’ monitoring of the users of virtual currencies, for whom blockchain may be an decisive enabling technology.; _________________ 1 OJ L 156, 19.6.2018, p. 43.

Amendment 35 #

Morten PETERSEN

Draft opinion
Paragraph 5

Amendment 36 #

Draft opinion
Paragraph 5

5. Stresses the need to consider the implications, both positive and negative, of blockchain technology in view of the goals of Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 2018 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing1 ~~, which brings~~; however makes clear the distinction between public blockchains, which can include providers of exchange services between virtual and fiat currencies, as well as custodian wallet providers, within its scope; notes that this Directive extends the EU’s regulatory reach to prevent criminal organisations from exploiting the anonymity of virtual currency-based transactions, and to improve national regulators’ monitohich fall under the scope of Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 2018 on the prevention of the use of the financial system for the purposes of money laundering ofr t~~he users of virtual currencies, for whom blockchain may be an enabling technology~~errorist financings cope, and private blockchains, which do not. _________________ 1 OJ L 156, 19.6.2018, p. 43.

Amendment 37 #

Draft opinion
Paragraph 5 a (new)

5a. Welcomes the suggestion, identified in the report, to set up an advisory group on blockchain within the European Commission; urges the need that this advisory group must include experts in the field of anti-money laundering, countering terrorism and tax evasion;

Amendment 38 #

Maria GRAPINI

Draft opinion
Paragraph 5 a (new)

5a. Stresses the need for cooperation between Member States to ensure systems interoperability and prevent glitches that would make cyberattacks possible.

Amendment 4 #

Maria GRAPINI

Draft opinion
Paragraph 1

1. Underlines that blockchain represents a new paradigm of data storage and management with a major role in the achievement of objectives for the single digital market, the rise of which poses challenges in terms of data protection and transparency, and exponentially increases the risks of money laundering, the capture of the financial system by organised crime and the financing of terrorism;

Amendment 5 #

Morten PETERSEN

Draft opinion
Paragraph 1

1. Underlines that blockchain represents a new paradigm of data storage and management, the rise of which poses opportunities but also challenges in terms of data protection and transparency, and exponentially increases the risks of money laundering, the capture of the financial system by organised crime and the financing of terrorism;

Amendment 6 #

Draft opinion
Paragraph 1

1. Underlines that blockchain represents a new paradigm of data storage and management, ~~the rise of which poses challenges in terms of data protection and transparency, and exponentially increas~~leading to increased transparency due to the inputting being immutable and shared with all the participating parties, th~~e risks of money launde~~us also ensuring, the ~~capture of the financial system by organised crime and the financing of terrorism~~security and integrity of data;

Amendment 7 #

Nadine MORANO

Draft opinion
Paragraph 1

1. Underlines that blockchain represents a new paradigm of data storage and management, the rise of which ~~poses challeng~~throws up new issues in terms of data protection and transparency, a~~nd exponentially increases the~~s well as risks of money laundering, ~~the captur~~use of the financial system by organised crime and the financing of terrorism;

Amendment 8 #

Draft opinion
Paragraph 1

1. Underlines that blockchain represents a new paradigm of data storage and management, the rise of which poses both challenges and opportunities in terms of data protection and transparency, and ~~exponentially inc~~that private blockchain prease~~s the risks of money laundering, the capture of the financial system by organised crime and the financing of terrorism~~nts potential solutions to money laundering by providing a record of transactions;

Amendment 9 #

Lieve WIERINCK, Fredrick FEDERLEY, Ramon TREMOSA i BALCELLS

Draft opinion
Paragraph 1 a (new)

1a. Differentiates between the positive opportunities, also for SMEs, deriving from the introduction of blockchain technology as part of the EU's trade policy, which will bring about, amongst other benefits, lower transactional costs and greater efficiency, and the application of this technology, which in other cases outside the scope of the EU's trade policy, may increase the risks of money laundering and the facilitation of the financing of terrorism;

source: 628.379

2018/10/10 ITRE 52 amendments...

Amendment 1 #

Draft opinion
Recital A a (new)

A a. - Whereas Blockchain in itself is not an application, but the technology behind its applications;

Amendment 10 #

Draft opinion
Paragraph 1 b (new)

1 b. DLT is a general-purpose technology, which has the capacity to reduce the transaction costs, improve efficiency by removing intermediaries and intermediation costs and increase the transparency and trust between the transacting parties through appropriate encryption and control mechanisms

Amendment 11 #

Draft opinion
Paragraph 1 c (new)

1 c. DLT is a “family” of distributed technologies of different designs, verification protocols and governance mechanisms, primarily divided between permissioned and permission-less ledgers. Though the application of permission-less blockchains can be used in the operations of international trade, we note that the majority of the applications that employ DLTs so far are based on permissioned ledgers.

Amendment 12 #

Draft opinion
Paragraph 1 d (new)

1 d. Notes that in the case of application of permission-less ledgers for international trade operations, the consensus mechanisms employed(e.g. “proof of work”, “proof of stake”, “proof of elapsed time” inter alia)have various energy consumption needs;

Amendment 13 #

Draft opinion
Paragraph 1 e (new)

1 e. Urges the consensus mechanisms should be environmentally friendly and less energy consuming.

Amendment 14 #

Draft opinion
Paragraph 1 f (new)

1 f. Underlines that DLT can be employed to reduce corruption, detect tax evasion, allow the tracking of unlawful payments, facilitate anti-money laundering policies and detect misappropriation of assets.

Amendment 15 #

Draft opinion
Paragraph 1 g (new)

1 g. Stresses that International Trade operations can be significantly improved especially in relation to the monitoring of the origin of goods and their ingredients through the supply chain, by providing a verification mechanism that advances visibility and compliance check that can ensure that sustainability and human rights protocols are followed in the place of origin of a product.

Amendment 16 #

Draft opinion
Paragraph 1 h (new)

1 h. Highlights that DLT can provide mechanism that mitigate the risk of the entering of illegal goods in the supply chain and ensure consumer protection. DLT can be an essential tool for the improvement of the operations of the Custom authorities in the fight of contraband;

Amendment 17 #

Draft opinion
Paragraph 1 i (new)

1 i. Notes that DLT minimizes the cost of logistics, shipping and transportation with a significant reduction in documentation and verification cost, with digitization of standard documents of transfer of ownership (e.g. bills of landing) improving thus the certainty and efficiency in various sectors, including container shipping;

Amendment 18 #

Lieve WIERINCK, Fredrick FEDERLEY, Ramon TREMOSA i BALCELLS

Draft opinion
Paragraph 1 j (new)

1 j. Calls on the Commission to explore best practices, encourage the development of applications and collaborate with the Member States for the development of coordinated actions that improve monitoring, control. security, and verification mechanisms as well as DLT based collaborative mechanisms between the Customs and Tax Authorities of the EU;

Amendment 19 #

Draft opinion
Paragraph 2

2. Notes the potential of the integration of DLTs with other technologies such as the Internet of Things, Artificial Intelligence and quantum computing, and calls for further research into their applicability to the digital transformation and automation of international trade; Welcomes the Commission proposal to set up the DigitalEurope Programme that will strengthen the EU΄s capacities for those technologies, as these are catalysts for blockchain technology;

Amendment 2 #

Lieve WIERINCK, Ramon TREMOSA i BALCELLS

Draft opinion
Recital A b (new)

A b. Whereas Blockchain is a disruptive technology with a potentially disruptive impact on different stakeholders around the industries it affects;

Amendment 20 #

Răzvan POPA

Draft opinion
Paragraph 2

2. Notes the potential of the integration of DLTs with other technologies such as the Internet of Things, Artificial Intelligence and quantum computing, and calls for further research into their applicability to the digital transformation and automation of international trade and cooperation with academia to find the best solutions to keep step with constantly developing new technologies;

Amendment 21 #

Rolandas PAKSAS

Draft opinion
Paragraph 2

2. Notes the potential of the integration of DLTs with other technologies such as the Internet of Things, Artificial Intelligence and quantum computing, and calls for further research into their applicability to the digital transformation ~~and automation of international trade~~, international trade, and automation of the public sector;

Amendment 22 #

Lieve WIERINCK, Fredrick FEDERLEY, Ramon TREMOSA i BALCELLS

Draft opinion
Paragraph 2 a (new)

2 a. Notes that Blockchain is becoming an important tool across various sectors and industries, notably in the financial sector and supply-chain modelling.

Amendment 23 #

Lieve WIERINCK

Draft opinion
Paragraph 2 b (new)

2 b. Stresses that Blockchain could have a disruptive effect on employment in labour-intensive service industries; calls on the Commission to request a study on the potential impact on disruptive inter- and intra-industry employment evolution;

Amendment 24 #

Marisa MATIAS

Draft opinion
Paragraph 3

3. Underlines that smart contracts can be a key enabler of decentralised applications in international trade operations, but warns, at the moment, that the technology may not be sufficiently mature for regulation to be considered legally enforceable; requests for a deep assessment of the potential and jurisdictional risks of using these new agreements.

Amendment 25 #

Lieve WIERINCK, Fredrick FEDERLEY

Draft opinion
Paragraph 3

3. Underlines that smart contracts can be a key enabler of decentralised applications in ~~international~~ trade operations, ~~but warns, at the moment, that the technology may not be suffici~~such as in balancing the energy market by helping supply to meet demand at the currently ma~~ture for regulation to be considered legally enforceable~~rket price through automatic smart contracts between prosumers, whom it fully empowers;

Amendment 26 #

Lieve WIERINCK, Fredrick FEDERLEY

Draft opinion
Paragraph 3 a (new)

3 a. Notes the important role that this technology can play in the completion of the EU Energy Union; Recognises the challenge that energy consumption poses when using this technology; Notes that blockchain could be part of the solution by using more efficient algorithms, improving the efficiency of energy exchanges, enhancing the design and use of energy grids and decentralised energy production, contributing to the transformation of the energy markets;

Amendment 27 #

Draft opinion
Paragraph 3 a (new)

3 a. Stresses that smart contracts can be a key enabler of decentralized application in international trade operations. We note that even though smart contracts is a developed concept in Computer Science, it is still new in a legal context and they are not developed yet to be considered as legally enforceable. There are technological risks, jurisdiction risks and general lack of mutual recognition that must be addressed;

Amendment 28 #

Draft opinion
Paragraph 3 b (new)

3 b. Notes that though it cannot be ruled out the potential of smart contracts for international trade operations, further encouragement is necessary for the development of technical standards that will ensure the quality, efficiency, security and arbitration mechanisms of those smart contracts;

Amendment 29 #

Lieve WIERINCK, Fredrick FEDERLEY, Ramon TREMOSA i BALCELLS

Draft opinion
Paragraph 3 c (new)

3 c. Encourages the further investigation of the possibility of use of cryptocurrencies (potentially a crypto- Euro) that will enable the transfer of value and assets between transacting parties in international trade operations via smart contracts;

Amendment 3 #

Draft opinion
Recital B

B. whereas DLTs, and in particular blockchain, could optimise transparency and traceability, in turn building confidence and fostering competitiveness and the capacity for innovation in the EU; Whereas nodes within the Blockchain operate under a pseudonym, and can therefore, by definition not operate anonymously;

Amendment 30 #

Lieve WIERINCK, Fredrick FEDERLEY, Ramon TREMOSA i BALCELLS

Draft opinion
Paragraph 3 d (new)

3 d. Calls on the Commission to promote the legal validity and mutual recognition of digital signatures throughout EU;

Amendment 31 #

Draft opinion
Paragraph 4

4. Calls on the Commission to collaborate with Member States in coordinated actions using DLTs to improve monitoring, control, security and verification mechanisms to fight unlawful payments, facilitate anti-money laundering policies and detect misappropriation of assets; Notes that the technology can provide an alternative to the central supervisory authority in models where this authority cannot be trusted;

Amendment 32 #

Răzvan POPA

Draft opinion
Paragraph 4

4. Calls on the Commission to collaborate with Member States in coordinated actions using DLTs to improve monitoring, control, security and verification mechanisms to fight unlawful payments, facilitate anti-money laundering policies ~~and~~, detect misappropriation of assets and identify the best conflict resolution options, especially regarding cross-border transactions;

Amendment 33 #

Lieve WIERINCK, Fredrick FEDERLEY, Ramon TREMOSA i BALCELLS

Draft opinion
Paragraph 4 a (new)

4 a. Notes that Blockchain can play an important role in the protection and sharing of intellectual property, specifically regarding the protection of the rights of the owner; Calls on the Commission to consider the role of Blockchain in the development of Smart IP Rights;

Amendment 34 #

Marisa MATIAS

Draft opinion
Paragraph 4 a (new)

4 a. Asks the commission to assess and develop a legal European framework in order to solve any jurisdictional problem that may arise in the event of fraudulent and criminal cases in DLT transactions.

Amendment 35 #

Draft opinion
Paragraph 4 a (new)

4 a. Emphasizes that DLTs technologies employed for international trade operations are data sensitive and GDPR provisions should be applied;

Amendment 36 #

Draft opinion
Paragraph 4 b (new)

4 b. Underscores that cybersecurity is critical for DLT based international trade operations. Calls on the Commission to monitor the technological developments (especially in quantum computing), explore the security challenges assess technological risks and undertake actions that improve our knowledge of the dangers associated with the use of DLTs;

Amendment 37 #

Draft opinion
Paragraph 6 a (new)

6 a. Notes that DLT is not merely a technology but an infrastructure in a wider sense and can work as the basis of the development of Internet of Things applications, that are essential for the automation and digital transformation of international trade;

Amendment 38 #

Draft opinion
Paragraph 6 b (new)

6 b. Calls on the Commission to promote and finance programmes that educate international trade stakeholders about the opportunities and challenges that DLTs bring in their operations as well as promote pilot projects and research initiatives to this direction;

Amendment 39 #

Draft opinion
Paragraph 6 c (new)

6 c. Underscores that the need for efficiency in international trade requires interoperability between DLTs as well as between DLTs and legacy operation systems. We note that standardization is necessary for the diffusion of the DLTs innovation and scalability;

Amendment 4 #

Rolandas PAKSAS

Draft opinion
Recital B

B. whereas DLTs, and in particular blockchain, could optimise transparency and traceability, in turn building confidence and fostering competitiveness and the capacity for innovation, new partnerships, and cooperation models in the EU;

Amendment 40 #

Lieve WIERINCK, Fredrick FEDERLEY, Ramon TREMOSA i BALCELLS

Draft opinion
Paragraph 6 d (new)

6 d. Highlights that standards setting is critical for DLT enabled international trade operations. A global view should be adopted by the EU in the development of standards. We call on the Commission to continue its collaboration with ISO and other international organizations in this field;

Amendment 41 #

Draft opinion
Paragraph 7

7. Calls for measures to encourage SMEs and start-ups to explore the use of DLT to improve international trade operations and the development of an innovation ecosystem that reduces entry barriers and facilitates access to financing; Stresses blockchain's potential role in enhancing the level playing field for SME's through a reduction in the administrative burden; Emphasises that the developing industry around Blockchain brings new employment opportunities;

Amendment 42 #

Răzvan POPA

Draft opinion
Paragraph 7

7. Calls for measures to encourage SMEs and start-ups to explore the use of DLT tohat will improve international trade operations and the development of an innovation ecosystem that reduces entry barriers and facilitates access to financing;

Amendment 43 #

Lieve WIERINCK, Fredrick FEDERLEY, Ramon TREMOSA i BALCELLS

Draft opinion
Paragraph 7 a (new)

7 a. Notes that DLT enables SMEs andstartups to explore innovative ways that improve international tradeoperations. Reduces the entry barriers of the firms and create opportunitiesfor jobs and growth across the line of the international supply chains;

Amendment 44 #

Draft opinion
Paragraph 7 a (new)

7 a. Emphasises that Blockchain can be used in applications of regulatory technologies (RegTech), significantly reducing compliance costs;

Amendment 45 #

Lieve WIERINCK, Fredrick FEDERLEY, Ramon TREMOSA i BALCELLS

Draft opinion
Paragraph 7 b (new)

7 b. Underscores that innovative SMEs and startups should be encouraged to explore opportunities opened by DLT in the space of international trade. The development of an innovating ecosystem around these applications should be developed in the EU. For achieving this goal, it is important to accelerate the channelling of capital from structural funds and investment instruments of the European Investment Fund to those innovative SMEs and startups;

Amendment 46 #

Draft opinion
Paragraph 7 b (new)

7 b. Highlights that the rise of a new industry around Blockchain comes with high efficiency gains and an increase in productivity;

Amendment 47 #

Draft opinion
Paragraph 7 c (new)

7 c. Underlines the improved transparency provided by DLT in international trade operations has the potential to reduce the costs of international trade insurance policies and facilitate the international trade financing operations and documentation;

Amendment 48 #

Draft opinion
Paragraph 7 d (new)

7 d. Calls on the EBA to explore the possibility of safe commercial bank operations that include the use of DLT based applications in order to improve the quality and streamlining of international trade financing;

Amendment 49 #

Lieve WIERINCK, Fredrick FEDERLEY, Ramon TREMOSA i BALCELLS

Draft opinion
Paragraph 7 e (new)

7 e. Calls on the ECB to recognize the need and explore the feasibility of a crypto-based Euro. A crypto-Euro can be a significant innovation that will enable the coding of the currency for execution of payments in algorithms that streamline international trade transactions, especially in smart contracts;

Amendment 5 #

Benedek JÁVOR

Draft opinion
Recital B a (new)

B a. whereas the emergence of DLT applications, especially in the financial sector, have revealed that the potential benefits are accompanied by challenges such as increased energy consumption, facilitation of organised crime activities, incompatibility with privacy protection

Amendment 50 #

Draft opinion
Paragraph 8

8. Welcomes the 'EU Blockchain and Observatory Forum' ~~and e~~on the 1st of February 2018. Requests hereby the Commission to explore the possibility to expand the mandate of the EU Blockchain Observatory and Forum in order to involve relevant stakeholders in the framework of addressing upcoming challenges; Encourages it to study applications aimed at facilitating international trade.

Amendment 51 #

Rolandas PAKSAS

Draft opinion
Paragraph 8

8. Welcomes the 'EU Blockchain and Observatory Forum' and encourages it to study applications aimed at facilitating international trade; calls on the Commission to initiate dialogue involving global players and watchdogs.

Amendment 52 #

Marisa MATIAS

Draft opinion
Paragraph 8

8. Welcomes ~~the 'EU Blockchain and Observatory Forum' and encourages it to study applications aimed at facilitating international trade~~de use of foresight and other forward looking research frameworks to better assess potencial opportunities and challenges of emerging technologies in support of decision makers.

Amendment 6 #

Lieve WIERINCK, Fredrick FEDERLEY, Ramon TREMOSA i BALCELLS

Draft opinion
Recital B a (new)

B a. - Whereas Blockchain’s inherent characteristics are automatic tracing, recognition, verification and supervision;

Amendment 7 #

Lieve WIERINCK, Fredrick FEDERLEY, Ramon TREMOSA i BALCELLS

Draft opinion
Paragraph 1 a (new)

1 a. Recognizes the significance of Distributed Ledger Technologies in improving the operations of International Trade and stresses the importance of further developing the DLT applications in the spirit of an innovation friendly approach that it is both technology neutral and business model neutral.

Amendment 8 #

Draft opinion
Paragraph 1 a (new)

1 a. Stresses that it is not desirable to legislate the Blockchain technology itself, but its applications instead. Notes that legislating the technology at the basis of the applications would limit innovation and the creation of new applications;

Amendment 9 #

Benedek JÁVOR

Draft opinion
Paragraph 1 a (new)

1 a. Underlines the need to study and asses the feasibility of using DLT based technologies as alternatives to the current solutions, before encouraging or financing new projects.

source: 628.602

2018/10/22 INTA 117 amendments...

Amendment 1 #

Motion for a resolution
Citation 4 a (new)

– having regard to the WTO Trade Facilitation Agreement,

Amendment 10 #

Aleksander GABELIC, Nicola DANTI, Alessia Maria MOSCA

Motion for a resolution
Recital A a (new)

Aa. whereas various case-studies and industries will derive different utility from a mixture of private/public, permissioned/permissionless blockchains;

Amendment 100 #

Motion for a resolution
Paragraph 19

19. Calls on the Commission to develop a set of guiding principles ~~tailored to industry to provide a level of certainty that encourages the use of blockchain and innovation in this area~~for blockchain application in international trade, in order to provide the industry, including SMEs, with a sufficient level of certainty that encourages the use of blockchain while still promoting innovation; believes that such guidelines should promote blockchain in suitable areas that may benefit from the technology;

Amendment 101 #

Motion for a resolution
Paragraph 19

19. Calls on the Commission to develop a set of guiding principles tailored to industry, customs authorities and international and domestic regulatory bodies to provide a level of certainty that encourages the use of blockchain and innovation in this area;

Amendment 102 #

Motion for a resolution
Paragraph 19

Amendment 103 #

Motion for a resolution
Paragraph 19

19. Calls on the Commission to develop a set of guiding principles tailored to industry and other operators to provide a level of certainty that encourages the use of blockchain and innovation in this area;

Amendment 104 #

Motion for a resolution
Paragraph 19 a (new)

19a. Expresses its concern about the fact that the blockchain technology is an unregulated practice, vulnerable to market manipulation and other risks, while it remains unclear how accountability mechanisms could be enforced in case of scams, hacks etc.

Amendment 105 #

Aleksander GABELIC, Nicola DANTI, Alessia Maria MOSCA, Karoline GRASWANDER-HAINZ

Motion for a resolution
Paragraph 21

21. Calls on the Commission to set up an advisory group within DG Trade on blockchain and to develop a concept note for private permissioned pilot projects on the end-to-end use of blockchain in the supply chain, involving customs and other cross-border authorities, and intellectual property rights and the fight against counterfeiting; recognises that blockchain technology is still in the early stages of development yet there is a need for an industry strategy on the effective implementation of blockchain;

Amendment 106 #

Motion for a resolution
Paragraph 21 a (new)

21a. Calls on the Commission to examine ways in which blockchain could support trade and sustainable development; recalls the Parliament’s position that measures flanking an EU digital trade strategy should be fully in line with and contribute to the realisation of the Sustainable Development Goals (SDGs), including SDG5 on gender equality and women empowerment;

Amendment 107 #

Aleksander GABELIC, Alessia Maria MOSCA, Karoline GRASWANDER-HAINZ

Motion for a resolution
Paragraph 21 a (new)

21a. Calls on the Commission to conduct policy investigations into how blockchain can modernise the Union’s trade defence policies to strengthen their legitimacy and enforcement;

Amendment 108 #

Motion for a resolution
Paragraph 22

22. Calls on the Commission to assess the optimality of blockchain architecture that keeps private data off the chain; recognises the importance of cross-border data flows for growth and jobs, and repeats that any future trade policy provisions on cross-border transfers of data must be subject to the consent of the Parliament and safeguard EU citizens’ fundamental rights;

Amendment 109 #

Motion for a resolution
Paragraph 22 a (new)

22a. Urges the Commission to involve privacy experts and CSOs in its research of the possible applications of blockchain, outlining the consequences of blockchain in the context of international and European privacy protection and rights;

Amendment 11 #

Motion for a resolution
Recital B

B. whereas ~~blockchain enables~~each block on a blockchain contains a hash that verifies the data on previous blocks, enabling separate parties to engage in transactions with enhanced trust and accountability because data stored on a ledger cannot be easily falsified;

Amendment 110 #

Aleksander GABELIC, Nicola DANTI, Alessia Maria MOSCA, Karoline GRASWANDER-HAINZ

Motion for a resolution
Paragraph 22 a (new)

22a. Calls on the Commission to assess how to increase trade facilitation and security by means of blockchain technology within the context of the Union Customs Code, including, but not limited to, the AEO concept.

Amendment 111 #

Motion for a resolution
Paragraph 23

23. Encourages the Commission to collaborate with and contribute to the work of international organisations and feed into current projects on producing a set of standards and principles to underpin regulation aimed at facilitating the use of blockchain;

Amendment 112 #

Aleksander GABELIC, Nicola DANTI, Alessia Maria MOSCA, Karoline GRASWANDER-HAINZ

Motion for a resolution
Paragraph 23 a (new)

23a. Is sceptical about the application of blockchain technology to the public domain as long as regulatory oversight is not safeguarded;

Amendment 113 #

Motion for a resolution
Paragraph 24

24. Calls on the Commission to play an active role in the process of standardisation and security of blockchain, and to work with the ~~industrie~~Members States, public sectors, industries, trade unions, civil society and other stakeholders to develop blockchain standards, including terminology, development, and deployment of the technology;

Amendment 114 #

Motion for a resolution
Paragraph 24

24. Calls on the Commission to play a~~n active~~ leading role in the process of standardisation and security of blockchain, and to work with ~~the industrie~~all relevant actors to develop blockchain standards, including terminology, security, development, and deployment of the technology;

Amendment 115 #

Aleksander GABELIC, Nicola DANTI, Alessia Maria MOSCA

Motion for a resolution
Paragraph 24 a (new)

24a. Calls on the Commission to assess the possibility to develop and build upon open-source solutions to permissioned blockchains in its strategy document on adopting blockchain technologies in trade and supply chain management;

Amendment 116 #

Motion for a resolution
Paragraph 25

25. Calls on the Commission to work with relevant stakeholders in order to review and develop a framework for addressing challenges to interoperability and compatibility between blockchain systems;

Amendment 117 #

Aleksander GABELIC, Nicola DANTI, Alessia Maria MOSCA

Motion for a resolution
Paragraph 25 a (new)

25a. Reminds the Commission that the European Union has an opportunity to become a leading actor in the field of blockchain and international trade, and should be an influential actor in shaping its development globally together with international partners;

Amendment 12 #

Motion for a resolution
Recital B a (new)

Ba. whereas open-source blockchain technology is the bedrock of the rise of permissioned blockchains worldwide, helping to raise the level of trust participants have in a given business- related network;

Amendment 13 #

Motion for a resolution
Recital B a (new)

Ba. whereas blockchain could enable certain administrators to clearly define roles, responsibilities, levels of access, and rights of validation for the participants;

Amendment 14 #

Motion for a resolution
Recital D a (new)

Da. whereas there are at least 202 government blockchain initiatives in 45 countries around the world and economies in Asia-Pacific, Americas and Middle East regions in particular are investing in blockchain technologies for trade;

Amendment 15 #

Motion for a resolution
Recital D b (new)

Db. whereas blockchain is still an evolving technology which necessitates an innovation friendly, enabling and encouraging framework that provides for legal certainty and respects the principle of technology neutrality, and at the same time promotes consumer, investor and environmental protection; for instance, the network effects associated with the adoption of blockchain technology risk posing challenges to SMEs;

Amendment 16 #

Motion for a resolution
Recital E

E. whereas blockchain can enhance and improve EU trade policies, such as Free Trade Agreements (FTAs), Mutual Recognition Agreements (MRAs), particularly of Authorised Economic Operators (AEOs), data adequacy decisions and trade defence measures;

Amendment 17 #

Motion for a resolution
Recital E

E. whereas blockchain can ~~enhance and improve EU trade policies, such as Free Trade Agreements (FTAs),~~make a positive contribution in the functioning of daily trade operations, for example with regard to Mutual Recognition Agreements (MRAs), ~~particularly of~~ Authorised Economic Operators (AEOs), and trade defence measures;

Amendment 18 #

Aleksander GABELIC, Nicola DANTI, Alessia Maria MOSCA, Karoline GRASWANDER-HAINZ

Motion for a resolution
Recital F

F. whereas blockchain ~~can~~bears great potential to improve transparency throughout the supply chain, raise the level of trust participants have in a given network, streamline customs checks and regulatory compliance, reduce transaction costs, and strengthen the immutability and security of data;

Amendment 19 #

Motion for a resolution
Recital F

F. whereas blockchain can improve transparency and traceability throughout the supply chain, streamline customs checks and regulatory compliance, reduce transaction costs, ~~and~~ strengthen the immutability and security of data, and could function as a tool to combat corruption;

Amendment 2 #

Motion for a resolution
Citation 4 b (new)

– having regard to the World Customs Organisation Revised Kyoto Convention,

Amendment 20 #

Aleksander GABELIC, Nicola DANTI, Alessia Maria MOSCA

Motion for a resolution
Recital F a (new)

Fa. whereas blockchain can provide a framework of transparency in a supply chain, reduce corruption, detect tax evasion, allow the tracking of unlawful payments and tackle trade-based money laundering (TBML); whereas there are risks associated with the use of unpermissioned blockchain applications for criminal activities, including tax evasion, tax avoidance and TBML and insists that these issues are monitored and addressed urgently by the Commission and Member States;

Amendment 21 #

Motion for a resolution
Recital F a (new)

Fa. whereas blockchain in the area of international trade is still evolving and therefore needs an innovation-friendly, enabling and encouraging approach that provides legal certainty, while at the same time promoting consumer, investor and environmental protection, increasing the social value of the technology, reducing the digital divide and improving the digital skills of citizens;

Amendment 22 #

Sorin MOISĂ, Laima Liucija ANDRIKIENĖ

Motion for a resolution
Recital F a (new)

Fa. whereas blockchain technology may provide all parties, public and private, involved in trade, with permanent access in real time to an immutable, time- stamped database holding documents pertaining to transactions, thus helping to build confidence, avoid compliance issues, and tackle the use of counterfeited goods or fake documents;

Amendment 23 #

Ramon TREMOSA i BALCELLS

Motion for a resolution
Recital F a (new)

Fa. whereas some EU regional and metropolitan areas have already started developing this technology through specific projects and programmes, based on their own characteristics, and creating networks for spreading best practices

Amendment 24 #

Motion for a resolution
Paragraph 1 a (new)

1a. Welcomes the EU’s effectiveness in concluding free trade agreements and its efforts to maintain and strengthen the international rules-based system of the WTO that has translated into real opportunities for businesses, consumers and emerging economies alike; welcomes the EU’s commitment to a rules-based trading system in order to ensure a level playing field and to enforce global trade rules;

Amendment 25 #

Motion for a resolution
Paragraph 1

1. Expresses regret that EU FTAs are underutilised as, on average, only 67% of EU exporters and 90% of EU importers make use of the preferential tariffs in both the EU and its partner countries or regions; notes that the Commission’s own explanations for this include the difficulties for businesses to understand the rules for obtaining preferential treatment and the cumbersome procedures for obtaining documents needed to benefit from preferential treatment; notes that exporters could upload all their documents to a public authority application underpinned by blockchain, and instantly prove their compliance with preferential treatment granted by the FTA, such as qualification for preferential rules of origin, sanitary and phytosanitary (SPS) rules, Trade and Sustainable Development (TSD) Chapter implementation and technical standards;

Amendment 26 #

Motion for a resolution
Paragraph 1

1. Expresses regret that despite previous trade successes, EU FTAs are still underutilised; notes that blockchain technologies could meet the growing challenges to the open-trading system; notes that exporters could upload all their documents to a public authority application underpinned by blockchain, and instantly prove their compliance with preferential treatment granted by the FTA;

Amendment 27 #

Aleksander GABELIC, Nicola DANTI, Alessia Maria MOSCA

Motion for a resolution
Paragraph 1

1. Expresses regret that EU FTAs are underutilised; notes that exporters could upload all their documents to a public authority application underpinned by blockchain, and ~~instantly prov~~demonstrate their compliance with preferential treatment granted by ~~the FTA~~an FTA; believes that blockchain could enhance provisions for cumulation in FTAs, such as the EU- Japan Economic Partnership Agreement;

Amendment 28 #

Motion for a resolution
Paragraph 1

1. Expresses regret that EU FTAs are ~~underutilised~~not fully utilised and supports analysis of technical solutions that may increase FTA utilisation and exports; notes that exporters could upload all their documents to a public authority application underpinned by blockchain, and instantly prove their compliance with preferential treatment granted by the FTA;

Amendment 29 #

Aleksander GABELIC, Nicola DANTI, Alessia Maria MOSCA, Karoline GRASWANDER-HAINZ

Motion for a resolution
Paragraph 1

1. ~~Expresses regret that EU FTAs are underutilised~~Identifies large untapped potential in EU FTAs; notes that exporters could upload all their documents to a public authority application underpinned by blockchain, and instantly prove their compliance with preferential treatment granted by the FTA;

Amendment 3 #

Motion for a resolution
Citation 9 a (new)

– having regard to the Joint Declaration on Trade and Women’s Economic Empowerment on the Occasion of the WTO Ministerial Conference in Buenos Aires in December 20175a, _________________ 5a https://www.wto.org/english/thewto_e/min ist_e/mc11_e/genderdeclarationmc11_e.p df

Amendment 30 #

Motion for a resolution
Paragraph 2

2. CViews the procedures for obtaining certification for both preferential and non-preferential rules of origin to be costly and cumbersome for businesses; for preferential, blockchain can assist to establish the economic nationality of a good to determine whether it is wholly obtained in one country, or materials and ingredients were obtained and processed from several countries; for non- preferential, considers that blockchain could assist the Union’s trade defence instruments by providing transparency over the provenance of goods entering the European market and an overview of the influx of imports;

Amendment 31 #

Motion for a resolution
Paragraph 2

2. Considers that blockchain could assist the Union’s trade defence instruments by providing transparency over the provenance of goods entering the European market and an overview of the influx of imports; it could also assist in innovative elements of trade policy such as the application of border tax adjustments for corporate and carbon taxes;

Amendment 32 #

Motion for a resolution
Paragraph 2

2. Considers that blockchain could assist the Union’s trade defence instruments by providing transparency over the provenance of goods entering the European market and an overview of the influx of imports to ensure a more level- playing field for businesses;

Amendment 33 #

Aleksander GABELIC, Nicola DANTI, Alessia Maria MOSCA, Karoline GRASWANDER-HAINZ

Motion for a resolution
Paragraph 2

2. Considers that blockchain could assist the Union’s adequate use of trade defence instruments by providing transparency over the provenance of goods entering the European market and an overview of the influx of imports;

Amendment 34 #

Motion for a resolution
Paragraph 3

3. Stresses that blockchain has the potential to support the trade and sustainable development agenda by providing trust in the provenance of raw materials and goods; stresses the increasing demand from consumers who want to know where goods are coming from and know the conditions under which the goods were produced; stresses that blockchain could contribute to the sustainability work of companies and promote responsible business conduct;

Amendment 35 #

Motion for a resolution
Paragraph 3

3. Stresses that blockchain has the potential to support the trade and sustainable development agenda by providing trust in the provenance of raw materials and goods as well as mitigating and eliminating risks around food security, export control, conflict minerals, counterfeit goods, forced and child labour, environmental impact and corruption;

Amendment 36 #

Marietje SCHAAKE

Motion for a resolution
Paragraph 3

3. Stresses that blockchain has the potential to support the trade and sustainable development agenda by providing trust in the provenance of raw materials and goods; notes in this regard the particular relevance of blockchain to improve the transparency of supply chains to combat trade in conflict minerals and illicit trade in cultural goods

Amendment 37 #

Aleksander GABELIC, Nicola DANTI, Alessia Maria MOSCA, Karoline GRASWANDER-HAINZ

Motion for a resolution
Paragraph 3

3. Stresses that blockchain has the potential to support the trade and sustainable development agenda by providing trust in the provenance of raw materials and goods, transparent production processes, and their compliance with international rules in the field of labour, social, and environmental rights and obligations;

Amendment 38 #

Motion for a resolution
Paragraph 3 a (new)

3a. Believes that blockchain could contribute to improved consumer protection through encouraging more transparent and traceable value chains, which may contribute to detect fraud, promote verifiability and transparency for goods protected by intellectual property rights, and combat trade in counterfeited goods;

Amendment 39 #

Aleksander GABELIC, Nicola DANTI, Alessia Maria MOSCA, Karoline GRASWANDER-HAINZ

Motion for a resolution
Paragraph 4

4. Believes that MRAs of AEOs enable businesses to diversify their supply chains; feels that blockchain offers the potential to reduce the uncertainty associated with implementing MRAs of AEOs, through a seamless exchange of data;deleted

Amendment 4 #

Motion for a resolution
Citation 15

– having regard to the declaration of 10 April 2018 by 221 EU Member States and Norway on the establishment of a European Blockchain Partnership8 , after which five more Member States have joined the Partnership, adding up to the current number of 27 signatory countries, _________________ 8 https://ec.europa.eu/digital-single- market/en/news/european-countries-join- blockchain-partnership

Amendment 40 #

Aleksander GABELIC, Nicola DANTI, Alessia Maria MOSCA

Motion for a resolution
Paragraph 4

4. Believes that MRAs of AEOs enable businesses to diversify their supply chains through reduced time and costs associated with cross-border customs; notes with concern that the Commission has only signed six MRAs of AEO with Norway, Switzerland, Japan, Andorra, the US and China and that there are implementation issues to be addressed, such as limitations on information sharing, incompatible technologies in different countries for the grant/application of agreed benefits to MRA partners’ AEOs, costs and investments required to develop new technologies and data storage requirements; feels that blockchain offers the potential to reduce the uncertainty associated with implementing MRAs of AEOs, through a seamless exchange of data;

Amendment 41 #

Motion for a resolution
Paragraph 4

4. Believes that MRAs of AEOs enable businesses to diversify their supply chains; ~~feel~~believes that blockchain offers the potential to reduce the uncertainty associated with implementing MRAs of AEOs, through a seamless exchange of data;

Amendment 42 #

Motion for a resolution
Paragraph 6

6. Considers that blockchain could enable customs authorities to automatically obtain the required information for a customs declaration, reduce the need for manual verification and paper trails, and provide a precise update on the status and characteristics of goods entering the EU to all relevant parties simultaneously thereby improving track and-trace and transparency;

Amendment 43 #

Motion for a resolution
Paragraph 7

7. Believes that digitisation will enable the exchange of information to be more efficient and transparent; views dithat blockchain can enable producers, laboratories, logisti~~sation as a prerequisite~~cs operators, regulators and consumers to have access to, and share, all necessary information such as provenance, testing, certification, and licensing; notes that blockchain could also assist the appropriate issuing of e- certificates; views digitisation and the use of applications along the supply chains to be both a prerequisite and a complement for blockchain to be fully functional;

Amendment 44 #

Motion for a resolution
Paragraph 7

7. Believes that digitisation will enable the exchange of information to be more efficient and transparent and that blockchain could improve the exchange of information by enabling customs authorities to automatically obtain the required information for a customs declaration, reduce the need for manual verification, provide a precise update on the status and characteristics of goods entering, leaving and transiting in the EU; views digitisation as a prerequisite for blockchain to be fully functional;

Amendment 45 #

Motion for a resolution
Paragraph 7

7. Believes that digitisation will enable the exchange of information to be more efficient and transparent; views digitisation as a prerequisite for blockchain to be fully functional; notes that substantial differences as regards digitisation exist between Member States;

Amendment 46 #

Motion for a resolution
Paragraph 8

8. Believes that the adoption of blockchain technologies throughout the supply chain can increase the ~~volume of global trade,~~efficiency, speed and volume of global trade by limiting the costs associated with international transactions as well as auditing and accounting and can lead to increased consumer confidence in digital trade;

Amendment 47 #

Aleksander GABELIC, Nicola DANTI, Alessia Maria MOSCA, Karoline GRASWANDER-HAINZ

Motion for a resolution
Paragraph 8

8. Believes that the adoption of blockchain technologies throughout the supply chain can increase the volume of global trade by reducing transaction costs and assisting businesses to identify new trading partners, and can lead to increased consumer confidence in digital trade;

Amendment 48 #

Motion for a resolution
Paragraph 8

8. Believes that the adoption of blockchain technologies throughout the supply chain can increase the volume of global trade, and can lead to increased consumer protection and confidence in digital trade;

Amendment 49 #

Aleksander GABELIC, Nicola DANTI, Alessia Maria MOSCA, Karoline GRASWANDER-HAINZ

Motion for a resolution
Paragraph 9

9. Underlines the utility of blockchain in the following ways: strengthening the certainty of the provenance of goods, reducing the risk of illicit goods entering the supply chain, upholding consumer protection, reducing the costs of supply chain management, and improving trust and business stability;for improving trust and business stability, notably in the following ways:

Amendment 5 #

Motion for a resolution
Citation 15 a (new)

– having regard to the Commission's launch of the EU Blockchain Observatory and Forum on 1 February 20182a, _________________ 2a http://europa.eu/rapid/press-release_IP- 18-521_en.htm

Amendment 50 #

Motion for a resolution
Paragraph 9

9. Underlines the utility of blockchain in the following ways: strengthening the certainty of the provenance of goods, reducing the risk of illicit goods entering the supply chain, upholding consumer protection and providing consumers with detailed information on the origin of the product to allow for an ethical and quality based selection, reducing the costs of supply chain management, and improving trust and business stability;

Amendment 51 #

Motion for a resolution
Paragraph 9

9. Underlines the utility of blockchain in the following ways: strengthening the certainty of the provenance of goods, ~~reducing the risk of illic~~providing verifiability and transparency for goods protected by intellectual property rights, reducing the risk of illicit goods including counterfeit goods entering the supply chain, upholding consumer protection, reducing the costs of supply chain management, and improving trust and business stability;

Amendment 52 #

Motion for a resolution
Paragraph 9

9. Underlines the utility of blockchain in the following ways: strengthening the certainty of the provenance of goods, increasing verifiability of goods protected by IPR, reducing the risk of illicit and counterfeit goods entering the supply chain, upholding consumer protection, reducing the costs of supply chain management, and improving trust and business stability;

Amendment 53 #

Motion for a resolution
Paragraph 9 – point a (new)

(a) Strengthening the certainty of both the provenance and intellectual property rights of goods, thereby reducing the risk of illicit goods, including fake and counterfeit goods, entering the supply chain as the ledger will detail the precise origins of the good, its intermediary components, the conditions of assembly and carriage and checks undertaken throughout the supply chain,

Amendment 54 #

Motion for a resolution
Paragraph 9 – point b (new)

(b) Providing authorities precise information as to when a good may have been damaged/tampered with on a supply chain, thereby enabling greater information for recall protocols,

Amendment 55 #

Motion for a resolution
Paragraph 9 – point c (new)

(c) Improving transparency by enabling all participants to record their transactions and share this information in the network,

Amendment 56 #

Motion for a resolution
Paragraph 9 – point d (new)

(d) Upholding consumer protection and trust by providing the customer with greater information on the good,

Amendment 57 #

Motion for a resolution
Paragraph 9 – point e (new)

(e) Reducing the costs of supply chain management as it will remove the need for intermediaries and the associated costs, the physical requirement to produce, transport and process paper documentation will be removed and all of the required information will be located in a single place on the blockchain,

Amendment 58 #

Motion for a resolution
Paragraph 9 – point f (new)

(f) Improving the application of correct duty and VAT payments, eliminating the need to determine the correct amount of tariffs at the border, and

Amendment 59 #

Motion for a resolution
Paragraph 9 – point g (new)

(g) Reducing the total time goods are in transit by automating tasks that are typically accomplished through manual means; notes the benefit this offers, in particular to just-in-time supply chains, both to reduce costs and the carbon footprint of the logistics industry;

Amendment 6 #

Motion for a resolution
Citation 16

– having regard to the Council conclusions of 19 October 20179 ~~, which highlight blockchain and artificial intelligence as key emerging trends and call on the Commission to put forward initiatives to address these issues,~~ _________________ 9 http://www.consilium.europa.eu/media/216 20/19-euco-final-conclusions-en.pdf

Amendment 60 #

Motion for a resolution
Paragraph 9 a (new)

9a. Notes that criminals can manipulate legitimate trade to mask their illicit activities, such as TBML, by tampering with the necessary documentation with false reporting such as overvaluation or undervaluation of the good concerned; believes that blockchain can enable customs and other authorities to take necessary actions in a timely, prompt and coordinated manner to expose illicit financial flows;

Amendment 61 #

Motion for a resolution
Paragraph 10

10. Recognises cross-border data flows of, both personal and non-personal data as well as machine-to-machine communication, as an integral function for international trade and the design of blockchain architecture;

Amendment 62 #

Aleksander GABELIC, Alessia Maria MOSCA, Karoline GRASWANDER-HAINZ

Motion for a resolution
Paragraph 10

10. Recognises cross-border data flows, both personal and non-personal as well as machine-to-machine communication, as an integral function for international trade and the design of blockchain architecture;

Amendment 63 #

Motion for a resolution
Paragraph 10

10. Recognises cross-border data flows as ~~an integral function~~necessary for international trade and the design of blockchain architecture; recognises the growing importance of cross-border data flows both within the EU and globally;

Amendment 64 #

Christofer FJELLNER

Motion for a resolution
Paragraph 10

10. Recognises cross-border data flows as an integral function for international trade in goods and services, and the design of blockchain architecture;

Amendment 65 #

Motion for a resolution
Paragraph 10

10. Recognises cross-border data flows as an ~~integral function for~~element of international trade and an integral part of the design of blockchain architecture;

Amendment 66 #

Motion for a resolution
Paragraph 11

11. Highlights the scope of blockchain for validating transactions across an international supply chain by defining levels of access and validation procedures for participants; is concerned about the associated risk for data confidentiality, as competing suppliers may inadvertently expose information by being part of various common blockchains;

Amendment 67 #

Motion for a resolution
Paragraph 12

12. Notes the connection between blockchain and cross-border data flows for trade; notes that a private permissioned inter-ledger network can provide trust between platforms by integrating data from multiple sources; highlights the distinction between personal and non-personal data on the blockchain;

Amendment 68 #

Motion for a resolution
Paragraph 12

12. ~~Notes the connec~~Is aware of the problematic relation between blockchain and cross- border data flows for trade; notes that a private permissioned inter-ledger network can provide trust between platforms by integrating data from multiple sources;

Amendment 69 #

Motion for a resolution
Paragraph 13

13. Recognises the challenge posed by the relationship between blockchain technologies and the implementation of GDPR; highlights that the implementation of blockchain should be compliant to other existing EU legislation on data protection, including the Regulation on electronic identification and trust services for electronic transactions in the internal market (eIDAS) and the EU Network and Information Security Directive (NIS); notes that blockchain technology can provide solutions for GDPR implementation because both initiatives are underpinned by common principles of ensuring secured and self-governed data; emphasises the limited effect of GDPR on commercial transactions undertaken on the blockchain due to the absence of personal data on blockchains;

Amendment 7 #

Motion for a resolution
Recital A

A. whereas in this report blockchain will be considered as a private, permissioned distributed ledger technology (DLT), comprising a database made up of sequential blocks of data that are added with the consensus of network operators unless otherwise stated;

Amendment 70 #

Motion for a resolution
Paragraph 13

13. Recognises the challenge posed by the relationship between blockchain technologies and the implementation of GDPR; notes that blockchain technology can provide solutions for GDPR implementation because both initiatives are underpinned by common principles of ensuring secured and self-governed dataStresses that any current and future blockchain application must be operated in complete compliance with the GDPR; underlines that blockchain technology can provide solutions for the "data protection by design" provisions in GDPR implementation on the basis of their common principles of ensuring secured and self-governed data; stresses that personal data in a blockchain are normally not anonymous, which makes them personal data within the scope of GDPR;

Amendment 71 #

Motion for a resolution
Paragraph 13

Amendment 72 #

Marietje SCHAAKE

Motion for a resolution
Paragraph 13

13. Recognises the challenge posed by the relationship between ~~blockchain technologie~~public permissionless blockchains and the implementation of GDPR; notes that blockchain technology can provide solutions for GDPR implementation because both initiatives are underpinned by common principles of ensuring secured and self-governed data;

Amendment 73 #

Christofer FJELLNER

Motion for a resolution
Paragraph 13 a (new)

13a. Reiterates its call for provisions allowing for the full functioning of the digital ecosystem, and promoting cross- border data flows in free trade agreements; notes in this regard that adequacy decisions do not advance the free flow of non-personal data; calls therefore for the Commission to negotiate binding and enforceable commitments on data transfers in FTAs including non- personal data;

Amendment 74 #

Motion for a resolution
Paragraph 13 a (new)

13a. Is concerned about the incompatibility of the blockchain technology with the right to be forgotten, and stresses that blockchain can pose a serious threat to the privacy of EU citizens;

Amendment 75 #

13a. Stresses the need for safeguards that ensure that private data is kept off a permissioned blockchain;

Amendment 76 #

Motion for a resolution
Paragraph 13 b (new)

13b. Remarks that the users of blockchain and blockchain applications should at all times have access to all data related to transactions in which they are directly or indirectly involved;

Amendment 77 #

Motion for a resolution
Paragraph 14

14. Believes that innovation and promotion regarding blockchain can create economic opportunities for SMEs to internationalise, by making it easier to interact with consumers, customs authorities, and other businesses involved in the supply chain; and the potential to overcome the costs associated with exporting; adds that the blockchain infrastructure can help bring products and services to market quickly and inexpensively allowing businesses of all sizes to compete on a level playing field;

Amendment 78 #

Motion for a resolution
Paragraph 14

Amendment 79 #

Aleksander GABELIC, Nicola DANTI, Alessia Maria MOSCA, Karoline GRASWANDER-HAINZ

Motion for a resolution
Paragraph 15

15. Highlights the benefits blockchain could bring to SMEs by allowing peer-to- peer communication, collaboration tools and payments, increasing the ease of doing business, reduce the risk of non-payment and the legal and procedural costs of contract fulfilment with the use of self- executing contracts;

Amendment 8 #

Bernd LANGE

Motion for a resolution
Recital A

A. whereas in this report blockchain will be considered as a private, permissioned or as a purely public distributed ledger technology (DLT), comprising a database made up of sequential blocks of data that are added with the consensus of network operators;

Amendment 80 #

Motion for a resolution
Paragraph 15

15. Highlights the benefits blockchain could bring to SMEs by allowing peer-to- peer communication, collaboration tools and payments, increasing the ease of doing business; recognises the need for ensuring that the development of blockchain in international trade is SME inclusive;

Amendment 81 #

Aleksander GABELIC, Alessia Maria MOSCA

Motion for a resolution
Paragraph 15

15. Highlights the benefits blockchain could bring to SMEs by allowing peer-to- peer communication, collaboration tools and secure payments, increasing the ease of doing business;

Amendment 82 #

Motion for a resolution
Subheading 5

Interoperability ~~and~~, scalability and interactions with related technologies

Amendment 83 #

Aleksander GABELIC, Alessia Maria MOSCA, Karoline GRASWANDER-HAINZ

Motion for a resolution
Paragraph 17

17. Notes the proliferation of different blockchains anchoring data for a transaction into separate private and public ledgers; recognises that there is an increasing need to develop a ~~means~~n interoperability standard to integrate transactions across blockchains around the movement of an item along a supply chain to encourage interoperability between systems;

Amendment 84 #

Motion for a resolution
Paragraph 17 a (new)

17a. Considers the possible interactions of blockchain technologies with other innovations in particular, for international trade, with the Internet of Things in developing sensors for transported goods; underlines the need to analyse the risks and opportunities connected with its developments;

Amendment 85 #

Motion for a resolution
Paragraph 17 a (new)

17a. Is concerned about the potential environmental costs of the blockchain technology, and stresses that the EU and Member States should always use the Paris Agreement and SDGs as a starting point while researching, developing and facilitating the use of blockchain;

Amendment 86 #

Motion for a resolution
Paragraph 17 a (new)

17a. Recognises the challenges of trading with countries who use different blockchain protocols; believes that the potential of the technology can only be fully achieved if the majority of operators adopt the technology;

Amendment 87 #

Bernd LANGE

Motion for a resolution
Paragraph 18

18. Calls on the Commission to follow developments in the area of blockchain, in particular the ongoing pilots/initiatives in the international supply chain; invites the Commission to produce a strategy document on adopting blockchain technologies in trade and supply chain management; believes that the aim must be to win the support of blockchain players for projects/initiatives in the international supply chain and to pursue projects on a joint basis incorporating the identity, provenance, and data storage of a variety of partners;

Amendment 88 #

Motion for a resolution
Paragraph 18

18. Calls on the Commission to follow developments in the area of blockchain, in particular the ongoing pilots/initiatives in the international supply chain; invites the Commission to produce a horizontal strategy document involving all Commission DG’s on adopting blockchain technologies in trade and supply chain management as well as in the area of intellectual property and in particular the fight against counterfeiting; invites the Commission to explore further areas of EU trade policy in which blockchain technologies could be a proper solution to existing challenges;

Amendment 89 #

18. Calls on the Commission to follow developments in the area of blockchain, in particular the ongoing pilots/initiatives in the international supply chain; invites the Commission to produce a strategy document on adopting blockchain technologies in trade and supply chain management; underlines the need to study and assess the feasibility of using DLT based technologies as alternatives to current solutions, before encouraging or financing new projects;

Amendment 9 #

Motion for a resolution
Recital A

A. whereas in this report blockchain will be considered as a ~~private,~~ permissioned distributed ledger technology (DLT), comprising a database made up of sequential blocks of data that are added with the consensus of network operators;

Amendment 90 #

Aleksander GABELIC, Nicola DANTI, Alessia Maria MOSCA, Karoline GRASWANDER-HAINZ

Motion for a resolution
Paragraph 18

18. Calls on the Commission to follow developments in the area of blockchain, in particular the ongoing pilots/initiatives in the international supply chain as well as customs and regulatory processes; invites the Commission to produce a strategy document on adopting blockchain technologies in trade and supply chain management;

Amendment 91 #

Motion for a resolution
Paragraph 18

18. Calls on the Commission to follow developments in the area of blockchain, in particular the ongoing pilots/initiatives in the international supply chain and external aspects of customs; invites the Commission to produce a strategy document on adopting blockchain technologies in trade and supply chain management;

Amendment 92 #

Aleksander GABELIC, Nicola DANTI, Alessia Maria MOSCA, Karoline GRASWANDER-HAINZ

Motion for a resolution
Paragraph 18

Amendment 93 #

Bernd LANGE

Motion for a resolution
Paragraph 18 a (new)

18a. Believes that the first steps must be taken, in the form of pilots and preliminary studies, to highlight the potential of blockchain technology; considers that the goal in the long term must be to combine all current efforts in this field, given that an Internet of blockchains will be the only means whereby blockchain networks, which tend to be case-specific, can sensibly be linked together and the technology’s potential thus enhanced to the full;

Amendment 94 #

Motion for a resolution
Paragraph 18 a (new)

18a. Calls on the Commission to further analyse the practical uses of blockchain in international trade; believes that uncertainty regarding juridical and governance aspects of blockchain is an important concern; encourages further analysis of these issues through policy labs and through inclusive platforms for dialogue and exchange of practices; encourages the Commission and national competent authorities to build up technical and juridical expertise in the area of blockchain in international trade;

Amendment 95 #

Ramon TREMOSA i BALCELLS

Motion for a resolution
Paragraph 18 a (new)

18a. Stresses that those EU regional and metropolitan areas that have already started developing this technology through specific projects and programmes shall be able to count on the expertise and knowledge treasured by the European institutions on this matter;

Amendment 96 #

Sorin MOISĂ, Laima Liucija ANDRIKIENĖ

Motion for a resolution
Paragraph 18 a (new)

18a. Calls on the Commission to launch and supervise a pilot project to manage a major EU trade corridor, such as between two major ports and/or alongside a key trade route, using blockchain technology, in order to test its benefits;

Amendment 97 #

Aleksander GABELIC, Nicola DANTI, Alessia Maria MOSCA, Karoline GRASWANDER-HAINZ

Motion for a resolution
Paragraph 18 b (new)

18b. Calls on the Commission to engage in, support and promote research in the area of blockchain in international trade, in this regard, recalls the Parliament’s position on the importance of promoting female participation in STEM (science, technology, engineering and mathematics) and of closing gender gaps in access to and in the use of new technologies; demands that the gender perspective is incorporated in all digital initiatives, ensuring that that the ongoing digital transformation also becomes a driving force for gender equality, which is essential for Europe's long-term growth and prosperity;

Amendment 98 #

Aleksander GABELIC, Nicola DANTI, Alessia Maria MOSCA, Karoline GRASWANDER-HAINZ

Motion for a resolution
Paragraph 18 c (new)

18c. Calls on the Commission to raise awareness about blockchain and its potential in international trade, to undertake initiatives for information spreading, education of citizens, and competence building regarding blockchain technology, and to address the problem of the digital gap between Member States; calls on the Commission and the Member States to develop and pursue digital skills training and retraining strategies in order to ensure society’s active and inclusive participation in changes coming from the digital transformation;

Amendment 99 #