Resolving Crypto & Smart Contract Disputes Out Of Court - U.K.
2021-04-22 | Eddy Morgan
A British govt-sanctioned task force has proposed a dispute resolution framework
that might keep crypto assets and smart contract disagreements out of the courts.
A 14-page
report outlined by LawTechUK’s “U.K. Jurisdiction Taskforce” puts forward new Digital Dispute Resolution Rules that aim
to offer a uniform means of
handling smart contract disputes.
Beneath the remit of the new rules, crypto-based disputes
might be resolved
without any major intervention by courts. The laws would
leave the appointment of an independent tribunal to adjudicate on matters of dispute, as well as any decision reached by the tribunal would be legally binding.
The rules also
leave disputes to be raised without disclosing one’s identity to anyone but the tribunal, retaining
a number of the anonymity afforded by
blockchain technology. The document also lays out the directions and procedures one must
fancy raise a dispute. Notably, if someone wishes
to require advantage of the dispute resolution service,
they have the only state so in whichever smart contract transaction
they're making.
“These rules
could also be incorporated into a contract, digital asset, or digital asset system by using the text [which
might also be in electronic or encoded form] ‘Any dispute shall be resolved in accordance with UKJT Digital Dispute Resolution Rules’,” the document explains.
If
a decision by the tribunal
must be enforced, it can be pursued via courts established on the law of England and Wales. Geoffrey Vos, Master of the Rolls [the head of civil justice in England and Wales] added that he foresaw
the principles being implemented
within a range of digital transactions
in the future.
“I am confident that the Digital Dispute Resolution Rules
are going to be incorporated into many sorts of digital transactions going forward.
The United Kingdom Jurisdiction Taskforce will keep
an in-depth watch on how the Digital Dispute Resolution Rules are used,
and can aim to think about whether experience suggests
they have revision within
the upcoming year,” said Vos,
within the foreword to the report.
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