The legislative Commission of great Britain has launched a research project to study reforms that will bring legal clarity to the use of smart contracts on the blockchain.
In a working paper published on Thursday, the independent Agency has carried out initial studies this year, and the official project should start in the summer. The Agency States that the aim is to «provide certainty and flexibility of law for its application in the global digital context and to illuminate all those who do not have clarity or certainty».
«There is a serious intention to undertake reforms in this area», — the document says.
The legislative Commission believes that smart contracts have the advantage of increasing «confidence and certainty» and increasing the efficiency of transactions in a business environment. Thus, the existing legal system needs to adapt to developing technologies to make the UK more attractive for business, the document says. In addition, it notes:
«It is important to ensure that the English courts and the right to remain competitive in the field of business solutions. Therefore, there is compelling evidence of the need for the Legislative research Commission the existing legislation applicable to smart contracts.»
This initiative follows a report published by the Commission in December 2017. It stood 14 regions, including smart contracts, which are planned to be included in legislative reform after a year-long process of public discussions.
Then, the Commission has stated that the study smart contracts can take from 9 to 18 months, adding:
«There are questions about how this feature (smart contract) will interact with the concepts of contract law, such as implied terms or contracts that are void from the beginning. There are also questions in connection with the data protection act».
Last year John Thomas (John Thomas), chief justice of England and Wales, also commented on this issue at a lecture organized by the law Commission, stating that British law may need to be updated to account for smart contracts on the basis of the blockchain.
Several U.S. States have recognized the legal power of smart contracts on the blockchain, or intend to in the near future. For example, Arizona did it back in the spring of 2017, Ohio has made a proposal in may and Florida in January.