When deciding which jurisdiction applies, private international law traditionally relies on geographical location. Therefore, problems arise when using distributed ledger technology—a digital system for recording transactions in multiple places at the same time, which is used in blockchain-based technologies.
David Hertzell, senior counsel for the Law Commission, said: ‘From assisting victims of crypto fraud to recognising how users interact with smart contracts and coding protocols, our provisional proposals respond to the socio-economic realities of the 21st century.’
Proposals include a ‘free-standing information order’ to help those who have lost crypto-tokens through fraud, factors to take into account when determining jurisdiction, such as parties’ expectations, and reforms to the Bills of Exchange Act 1882.
Respond to the consultation paper, Digital assets and electronic trade documents in private international law, by 8 September.
