National Blockchain Laws as a Threat to Capital Markets Integration

Abstract Various states have started providing private law frameworks for blockchain transfers and crypto assets. France Liechtenstein adopted the first acts, while a commission of British government sees no difficulties in extending property protection under common to In USA, an amendment Uniform Commercial Code has been suggested, which not stopped some going their own, different way. The aim all cases is promote use modern distributed ledger technology enhance investor protection. While these initiatives will increase legal certainty, they differ significantly. This important downside: there strong risk that be made subject diverging rules. Similar world intermediated securities, various national laws need consulted determine rights privileges investors. may transaction costs, thwart interoperability, produce thorny conflict-of-laws problems. Markets being fragmented into segments, with inevitable diminution depth liquidity. As remedy, this article suggests developing uniform rules blockchain. Before legislators judges once again divide through idiosyncratic rules, assets should harmonized highest degree possible. ideally forged at global level, by fora like International Institute Unification Private Law (Unidroit), United Nations Commission on Trade (UNCITRAL), Hague Conference Law. absence worldwide uniformization take place regional level—for instance, European Union. makes specific suggestions as how can achieved what content those be.