The Law Commission believes that the existing English and Wales law can be applied to smart contracts. The commission said in a report there is no need for statutory law reform. In some contexts, the commission says that incremental development of the common law "is all that is required to facilitate the use of smart legal contracts within the existing legal framework."
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"Smart legal contracts could revolutionize the way we do business, particularly by increasing efficiency and transparency in transactions," said Professor Sarah Green, the Law Commissioner for the Commercial and Common Law Team.
The Law Commission has also agreed with the UK government to undertake a project looking at the rules relating to conflict of laws as they apply to emerging technology, including smart legal contracts and digital assets, and considering whether reform is required. The commission says it plans to be in a position to begin work on the new conflict of laws project in mid-2022.
In October last year, EXANTE Co-Founder, Anatoliy Knyazev, stressed out that decentralized finance platforms like Uniswap will likely face regulatory pressure as it is unwittingly working with US clients. The Co-Founder of EXANTE noted that the high-profile case with the BitMEX cryptocurrency exchange, which, according to the US Commodity Futures Trading Commission offered US clients illicit crypto derivative trading services, is based "on a complex of rules, rather than a specific incident."
In September this year, the US Securities and Exchange Commission (SEC) opened an investigation into Uniswap Labs, the developer of the decentralized crypto exchange. According to sources close to the investigation, the regulator is interested in information about how investors use the platform.
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