The Governance of Blockchain Financial Networks

(2017) 80(6) Modern Law Review 1073–1110

LSE Legal Studies Working Paper No. 16/2017

45 Pages Posted: 30 Nov 2016 Last revised: 6 Dec 2017

Philipp Paech

London School of Economics - Law Department

Multiple version iconThere are 2 versions of this paper

Date Written: December 16, 2016

Abstract

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

Paech, Philipp, The Governance of Blockchain Financial Networks (December 16, 2016). (2017) 80(6) Modern Law Review 1073–1110; LSE Legal Studies Working Paper No. 16/2017. Available at SSRN: https://ssrn.com/abstract=2875487 or http://dx.doi.org/10.2139/ssrn.2875487

Philipp Paech (Contact Author)

London School of Economics - Law Department ( email )

Houghton Street
London WC2A 2AE, WC2A 2AE
United Kingdom

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