Adapting The Law For A Digital Future: New 'Digital Dispute Resolution Rules'

On 22 April 2021, the UKJT published the new "Digital Dispute Resolution Rules" (the "Rules"). Their purpose is to provide a swift and cost-effective resolution to disputes arising out of novel digital technologies, particularly those related to: digital assets, smart contracts, distributed ledger technologies, and fintech applications by way of arbitration (Rule 1).

The Rules constitute a significant step for England and Wales towards the creation of a harmonised legal framework for digital assets and related transactions. They grant more certainty for traders and further consolidate the idea that blockchain technology and crypto assets don't fall outside the law.

The Rules provide for the likelihood that traders may operate under arrangements that allow for disputes to be resolved by a community voting system. The Rules have recognised such arrangements as legally binding and have been drafted to work alongside such provisions, but they can also apply alone.