Dispute Resolution Rules to regulate cryptocurrency, blockchain or AI disputes
It is common knowledge that cryptocurrencies, blockchain and smart contracts will impact all sectors in the very near future. The question that many firms are not asking themselves is: what to do in case of disputes related to these tools?
LawtechUK has recently published new UKJT Digital Dispute Resolution Rules to resolve any disputes between companies in relation to these digital tools. Under these rules, the dispute is referred to an arbitrator, rather than a national court. The aim of establishing arbitration as a way of resolving disputes is to streamline procedures, as well as to ensure greater flexibility for the benefit of the parties.
"Until now, there has been little consistency in the way disputes relating to these technologies have been resolved, resulting in lengthier and more costly proceedings," says the Working Group that drafted the Regulation.
More and more businesses are adopting the use of digital documentation and making use of digital contracts and tools, and the regularisation of disputes is an issue that is little addressed by the legal community.
Having this new and innovative Regulation in place will give businesses greater confidence when entering into digital contracts with other businesses, or selling services to entities, in exchange for cryptocurrencies.
The Rules are articulated in the same way as other international arbitration rules, as they provide for the initiation of arbitration proceedings, the appointment of the arbitral tribunal, the ability of the tribunal to modify or cancel entries and digital tools, among other decisions.
It is important to remember that as the Rules are made by an English public institution, the law applicable to the Rules is the law of England and Wales, and the law governing the arbitration proceedings is the Arbitration Act 1996.