Law and Blockchain: A Legal Perspective on Current Regulatory Trends Worldwide

Abstract

This paper expounds the latest main regulatory projects and industry-wide consultations in the United States (US), in the European Union (EU) and in the main economic countries where distributed ledgers (thereafter, “Blockchain”) regulations have been discussed, proposed and/or adopted. In just a few years, the Blockchain has become a major topic for public decision-makers worldwide. As this disruptive and decentralized technology has emerged as a key business issue for start-ups and market participants, the central banks and financial regulators have changed, most notably in the US and in the EU, from an initial strong hostility to a more cautious and market-friendly position. The paper extensively covers and compares the current regulatory trends in selected relevant countries on the various applications enabled or issues raised by the Blockchain technology (Bitcoin/virtual currencies/crypto-tokens, smart contracts, decentralized autonomous organization (“DAO”), initial coin offerings/“ICO”…). Three main regulatory items should be distinguished and will be analyzed separately thereafter: (I) the virtual currencies regulation, (II) the ICO (and crypto tokens) regulation, and (III) the legal validity of Blockchain technology and smart contracts.