The British Jurisdiction Taskforce of the Lawtech Delivery Panel has published a statement on the status of crypto currencies, distributed ledger technology (DLT) and smart contracts under English and Welsh private law.
This was announced by the British business network Tech Nation on 18 November. The document aims to eliminate legal uncertainties in crypto currencies and recognises crypto assets as tradable property and smart contracts as enforceable agreements under local law.
The Importance of Blockchain Regulation
Jenifer Swallow, Director of the Lawtech Delivery Panel, said the global market for smart contracts is expected to reach $300 million by 2023. The World Economic Forum predicts that by 2027 one tenth of global GDP will be stored on blockchains. For this reason, Swallow considers it particularly important to adapt regulations to these new technologies:
“It’s great to see how adaptable our common law system is to rapidly changing technologies, as this landmark legal statement from the UKJT shows. Tech Nation looks forward to working with the Lawtech Delivery Panel on leading initiatives such as this to support economic growth, legal clarity and the development of new technologies”.
According to Tech Nation, legal uncertainty is considered by many to be the biggest obstacle to crypto currencies and the acceptance of smart contracts. The legal statement in question is an essential step in addressing the lack of regulatory clarity. The Chancellor of the Supreme Court and Chairman of the UK Competence Task Force, Geoffrey Vos, reaffirmed the potential of cryptosystems and smart contracts:
“Legally, cryptoassets and smart contracts are undoubtedly the future. I hope that legal clarification will make a major contribution to ensuring much needed market confidence, legal certainty and predictability in areas of great importance to the technology and legal community and the global financial services industry”.
According to the report, the declaration will serve as a basis for the general introduction of crypto-assets and smart contracts in the UK and will provide a strategic advantage for block-chain start-ups operating in the country. The LawTech Delivery Panel is a team of industry experts and insiders from the government and judiciary to support the growth of the UK justice system.