The UK has recently published its Digital Dispute Resolution Rules to be used for and incorporated into on-chain digital relationships and smart contracts, to enable the prompt and cost-effective resolution of disputes arising out of digital technology such as cryptoassets, cryptocurrency, smart contracts, distributed ledger technology and fintech applications.
These rules may be incorporated into a contract, digital asset or digital asset system by including the text (which may be in electronic or encoded form)
“Any dispute shall be resolved in accordance with UKJT Digital Dispute Resolution Rules”.
The rules are ground-breaking in that they allow for:
– Arbitral or expert dispute resolution in very short periods
– Arbitrators to implement decisions directly on-chain using a private key
– Optional anonymity of the parties
Any dispute between interested parties arising out of the relevant contract or digital asset which was not the subject of an automatic dispute resolution process shall be submitted to arbitration in accordance with the version of these rules which is current at the time of submission; but any expert issue shall be determined by an appointed expert acting as such and not as an arbitrator.
The outcome of any automatic dispute resolution process shall be legally binding on interested parties.
If you have any concerns or queries relating to the new rules and any concerns you may have, please contact your usual Beavis Morgan or BM Connect adviser who will be able to put you in touch with the right expert adviser who will be able to assist.