Could Australian our common law system charge ahead like in the UK with legal certainty for smart contracts and cryptoassets?
Cryptoassets and smart contracts undoubtedly represent the future of the technological and legal communities and to the global financial services industry…
In an International Commonwealth landmark statement, the Commonwealth Jurisdiction Taskforce of the Lawtech Delivery Panel could set out the recognition of cryptoassets as tradable property, and smart contracts as enforceable agreements under Australian Commonwealth Law and through the Commonwealth.
The statement is being hailed through the Commonwealth as a significant step in recognising the legality of smart contracts and the trading of cryptoassets in Australia, with legal certainty no longer proving a barrier to adoption.
By providing investors with increased confidence of their rights, the statement helps to provide a dependable foundation for mainstream utilisation of cryptoassets and smart contracts globally.
By setting out that smart contracts exist as agreements that can be identified, interpreted and enforced using ordinary and well-established legal principles, the industry now has the certainty needed to push ahead with innovations to revolutionise the legal agreement lifecycle and arbitration processes.
The worldwide smart contract market is expected to reach $300m by 2023 and the World Economic Forum predicts 10% of global GDP will be stored on the blockchain by 2027. It is great to see the adaptability of our common law system to fast-changing technology.