The jurisdiction taskforce of the United Kingdom of the Lawtech Delivery Panel published a statement concerning the cryptocurrencies status, distributed ledger technology (DLT) as well as smart contracts under English and Welsh private law.
The U.K. entrepreneur Tech Nation gave an announcement of the publication of the paper on 18th November. The aim of the document is to address the legal uncertainties of cryptocurrency and also recognizes crypto assets as tradeable property and smart contracts as enforceable agreements under the local law.
The Benefit of Blockchain Regulation
The director of Lawtech Delivery Panel Jenifer Swallow also said that the worldwide smart contract market is expected to hit approximately $300 million by 2023 and the World Economic Forum gave a prediction that one-tenth of the global GDP will be stored on a blockchain by 2027.
Because of that, she thinks that adapting regulation on the new technologies is particularly important, stating:
“It is great to see the adaptability of our common law system to fast-changing technology, demonstrated in this landmark legal statement from the UKJT. Tech Nation is excited to work with the Lawtech Delivery Panel on leading initiatives such as this, to support business growth, clarity in law and the evolution of new tech.”
Tech Nation also notes that a lot of people believe legal uncertainty is the most significant barrier to cryptocurrency and adoption of smart contract. The legal statement that is in question is reportedly a huge step towards addressing the lack of regulatory clarity. The Chancellor to the High Court and also chair of the U.K Jurisdiction Taskforce Geoffrey Vos recognized the potential of crypto assets and smart contracts. He said:
“In legal terms, crypto assets and smart contracts undoubtedly represent the future. I hope that the Legal Statement will go a long way towards providing much needed market confidence, legal certainty and predictability in areas that are of great importance to the technological and legal communities and to the global financial services industry.”
According to the report, the statement is aimed to serve as a foundation for the mainstream adoption of crypto assets and smart contracts in the U.K. and also provide an advantage that is strategic to blockchain startups which are operating in the country.
LawTech Delivery Panel is a team that consists of industry experts and government insiders and judiciary space that aims to assist in the growth of the judiciary system in the U.K.