Draft Data Privacy Bill: Data Localization unnecessary says EU
The European Union (“EU”) has expressed its reservation on the Draft Personal Data Protection Bill, 2018 (“Bill”) as drafted by the Justice B.N Srikrishna Committee (“Committee”). The EU made an online submission to the Ministry of Electronics and Information Technology (“MeiTY”) a day before the MeiTY’s deadline for feedback on the Bill.
EU’s main reservation was the requirement of data localization. As per the Bill, all entities collecting personal data in India will be required to store a copy of such data in the territory of India. The Committee was of the opinion that mandating data localization would (i) reduce the risk of data leaks and hacks; and (ii) make it easier for investigating agencies to obtain a copy of such data if required for an investigation.
The EU, in its online submission, has stated that (i) there is no proof to show that storing personal information in India would reduce the risk of data leaks; and (ii) requiring companies to store data in India would be a big compliance requirement for the company itself. The EU mentioned that this move may impact India’s start up ecosystem, which relies heavily on collecting personal information.
For the purpose of sharing information for any investigation, the EU recommended that India separate agreements with different countries allowing for mutual access of data.
GameChanger Views:
- While we agree with the view of the EU that the requirement of data localization will put an additional compliance burden on data processors and fiduciaries, we do not agree on the view of the EU that entering into separate agreements with other countries will ensure that Indian investigation agencies will get access to data efficiently. The time it will take for Indian investigation agencies to request access from foreign servers will take longer than to get access to the servers if they were located in India; primarily because when foreign countries need to give access to data to Indian investigation agencies, they will need to also ensure that they do not violate their own domestic laws.
Parties push government to issue a cryptocurrency policy
Several startups have recently begun a social media campaign requesting the central government to come up with a policy to regulate Cryptocurrencies in India. While the RBI issued a circular on April 06, 2018 banning all crypto currencies in India (“RBI Circular”), the Government is yet to take a stand on the issue.
The Government, in response to the RBI circular, had constituted a 10 (Ten) member interdisciplinary committee (“Committee”) chaired by the Special Secretary (Economic Affairs), Government of India to examine the existing framework with regards to virtual currencies and prepare a policy. The Committee, which was required to submit its report its report by July 11, 2017 is yet to submit its report.
Notably, several countries and organizations across world like South Korea, the United States and the EU have come up with laws relating to the legality of cryptocurrencies. Startups are looking for the Indian Government to come up with a policy in order to ensure that there is further clarity on the issue.
GameChanger Views:
- We are of the opinion that the central government should come up with a policy dealing with Cryptocurrencies. The RBI Circular, makes a blanket ban on this topic without providing for any exceptions. Given the current market trend, it would seem that the Government providing for a policy on cryptocurrencies would give a boost to the startup ecosystem in the country and open up new opportunities.
Ola plans to go electric: May help government meet its 2030 EV goals
The cab-hailing app Ola is looking to expand its business as it has been reported that it is planning to showcase a concept electric vehicle (“EV”) soon which it plans to manufacture in Bengaluru. Ola has is reportedly in talks with several vendors to buy the equipment required to manufacture these EVs
GameChanger Views:
- A big player like Ola entering into the EV market may encourage other companies to also enter into the EV market. This will be a big boost to achieve the government’s aim of ensuring that at least 30% (Thirty Percent) of all cars sold by 2030 should be EV
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