The British Law Commission, which is responsible for overseeing British laws and making reform proposals, stated that England and Wales do not need statutory reforms on smart legal contracts in the field of digital assets.
In Thursday’s announcement, the committee Said Smart contracts built using distributed ledger technology are allowed within the current legal framework of England and Wales. The Legal Committee only recommends the “gradual development of common law” based on the needs of the existing framework, but also encourages any party to the smart contract to explain the risks associated with “code performance” and any other necessary provisions.
The committee stated that the conclusion is based on the conclusion reached by the UK Judicial Working Group, which in 2019 Recognition of smart contracts as executable agreements According to local laws, in addition to marking encrypted assets as tradable property. However, the organization added that its goal is to work with the UK government on a project to study any potential legal conflicts related to emerging technologies in 2022.
The announcement stated: “The analysis of the Law Commission shows that common law has the flexibility to adapt to technological development, especially in the context of smart legal contracts.” “It confirms that the jurisdictions of England and Wales provide an ideal for business and innovation. Platform.”
“As smart legal contracts become more common, the committee expects that the market will develop established practices and model clauses that parties can use to simplify the process of negotiating and drafting smart legal contracts.”
Determining which regulations and laws apply to emerging markets including cryptocurrency and blockchain is largely limited to individual governments, although cross-border transactions and other actions affecting multiple countries seem to require a framework.Some people in the public and private sectors have Allegations of regulatory negligence and crackdowns Ultimately it will benefit the field of encryption, while others have asserted that regulators should adapt the existing framework to digital assets, not the other way around.