UK Law Commission It is responsible for reviewing UK law and recommending reforms. It said English and Welsh law does not require legal reforms for smart contracts in the digital asset space.
In the announcement on Thursday commissionsaid Smart contracts created using distributed ledger technology are permitted within the current legal framework of England and Wales. It is a conclusion built on what it received from the UK Jurisdiction Taskforce in 2019, which recognized that smart contracts are enforceable under local law. In addition to labeling crypto assets as tradable assets.
“Analysis of the Legislative Commission Demonstrates the flexibility of common law to accommodate technological developments. especially in the context of smart legal contracts,” the announcement said. “It confirms that the English and Wales jurisdictions are ideal platforms for business and innovation.”
“As smart legal contracts become more prevalent, The Commission anticipates that the market will develop established guidelines and models 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 cryptocurrencies and blockchain, are largely limited to individual governments. Although it seems likely that a framework for cross-border transactions and other actions that affect more than one country is needed, there is a need. But some, both in the public and private sectors, claim that regulatory and crackdown will ultimately benefit the crypto space. While others argue that regulators should adapt existing frameworks to digital assets. not vice versa
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