The UK Is Preparing For Legal Settlement Of Smart Contracts

The UK Is Preparing For Legal Settlement Of Smart Contracts

From today the UK Law Commission, which has been established by the UK Parliament, begins work on the draft legal reform. The goal of legislative reform is the integration of the smart contracts institution into the legal system of the state.

The Commission has already conducted the analysis of legal problems concerning contractual relations based on smart contracts that have been concluded on blockchain platforms (for example, Ethereum). The Commission has come to the conclusion that smart contracts are the future of contractual relations. They increase the trust and efficiency of transactions between contractual parties. This requires reforming the legal system to guarantee rights and interests of business entities that use blockchain technology. The Commission believes that legal reform will make the country more attractive for doing business.

«The purpose of this project would be to ensure that the law is sufficiently certain and flexible to apply in a global, digital context and to highlight any topics which lack clarity or certainty», the Commission reported.

This is a very good sign, but the process of drafting a reform can take up to 18 months. The main thing is that it can give a start for reforming the legislative base of other jurisdictions.

Featured image from Pexels.