Britain proposes integrating smart contracts into the legal framework

The existing regulatory framework of England and Wales will not require major changes to enable the enforcement of smart contracts. That conclusion was reached by the Independent Legal Commission established by the British Parliament.

According to experts, only in certain circumstances will minor modifications to the common law be required. Their findings confirm similar statements by the relevant working group in November 2019.

The analysis indicates the flexibility of the common law to accommodate legal smart contracts, and England and Wales’ attractiveness for business and innovation.

The Commission urged market participants to develop risk provisions to account for the execution of smart contracts, as well as protocols for understanding the relationships between the code used in them and natural language.

Experts forecast that as these tools become more widespread, an established practice and standard provisions will emerge to simplify negotiations between the parties.

Experts proposed further research into the resolution of disputes related to smart contracts and new technologies more generally.

Experts noted that work is underway on regulating cryptocurrencies and digital assets with regard to tangible and intangible property rights.

Collins named the abbreviation NFT as the Word of the Year for 2021. Among the short-listed nominees were words such as “crypto” and “metaverse”.

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