The Governance of Blockchain Financial Networks
(2017) 80(6) Modern Law Review 1073–1110
45 Pages Posted: 30 Nov 2016 Last revised: 6 Dec 2017
Date Written: December 16, 2016
Since the emergence of the virtual currency Bitcoin in 2009, a new, Internet-based way of recording entitlements and enforcing rights has increasingly captured the interest of businesses and governments. The technology is commonly called ‘blockchain’ and is often associated with a closely related phenomenon, the ‘smart contract’. The market is now exploring ways of using these concepts for financial assets, such as securities, legal tender and derivative contracts. This article develops a conceptual framework for the governance of blockchain-based networks in financial markets. It constructs a vision of how financial regulation and private law should set the boundaries of this new technology in order to protect market participants and societies at large, while at the same time allowing for the necessary room for innovation.
Keywords: Blockchain Technology, Fintech, Financial Assets, Financial Regulation, Private Law, Private International Law
JEL Classification: K11, K12, K22, K33
Suggested Citation: Suggested Citation