A UK government sanctioning task force has proposed a dispute resolution framework that does not allow disputes over cryptocurrencies and smart contracts in court.
A 14-page report published by LawTechUK UK’s Judicial Task Force proposes a new digital dispute resolution policy aimed at providing a unified method for smart contract dispute resolution.
Under the new rules, cryptocurrency disputes can be resolved without much interference from the courts. Laws allow for an independent court to be appointed to handle disputes, and any decision the court makes will be legally binding.
The rules also allow for the possibility to raise disputes without revealing their identities to anyone other than the court, while preserving some of the anonymity provided by blockchain technology. The document also describes the instructions and procedures that must be followed to initiate a dispute. Especially if someone wants to use a dispute resolution service, they just have to indicate this in any smart contract transaction they undertake.
“These rules may be incorporated into a contract, digital asset, or digital asset system by including text (which may be in electronic or encrypted form)“ Any dispute shall be resolved in accordance with UKJT Digital Dispute Resolution Rules ”, the document states …
If the court’s decision is valid, it can be enforced through the courts established under the laws of England and Wales. Sir Geoffrey Voss, Director General (Head of Civil Justice in England and Wales), said he expects the rules to be applied in a number of digital transactions in the future.
“I am confident that digital dispute resolution rules will be incorporated into many types of digital transactions in the future.” Voss said in the introduction to the report that the UK’s Jurisdiction Task Force will closely monitor the implementation of the DSR rules and will seek to assess whether the experience is It appears that it needs to be revised over the next year.