According to a study by the think tank Social Market Foundation, England’s legal system is not adapted for the implementation of cryptocurrencies, artificial intelligence and blockchain.
Analysts at the Social Market Foundation (SMF), an independent British public policy center, conducted a survey among British lawyers, academics and companies, discussing with them the regulation of blockchain and cryptocurrencies in the country. This was reported by the Scottish Legal News. SMF experts came to the conclusion that English law is still relevant only in relation to contracts and the resolution of litigation. But when it comes to blockchain, cryptocurrencies, artificial intelligence and biotechnology, England’s legislation is not ready for such innovations.
The SMF believes that if England’s legislators do not adapt it to the new realities, the country risks losing its international influence. Given the lengthy and costly litigation in England, as well as the lack of laws regulating cryptocurrency activities in the country, startups and companies can abandon doing business in this jurisdiction and move to countries with a more loyal attitude towards digital assets. The UK is taking its economic and social benefits for granted, ignoring the emergence of cryptocurrencies and allowing other countries to “take the reins into their own hands,” according to SMF analysts.
“Our laws and legal institutions are respected throughout the world, making the UK an influential international legal power. But if firms cannot use English law to conclude contracts related to cryptocurrencies, they will be forced to operate under the laws of other countries. To maintain its position in the global economy of the 21st century, the UK must update its legal code and legal institutions, ”said Richard Hyde, Senior Research Fellow at SMF.
In this regard, Singapore may become a serious rival for Great Britain. Ravi Menon, Managing Director of the Monetary Authority of Singapore (MAS), recently announced that the agency will soon be preparing a regulatory framework for effective regulation of cryptocurrencies, so that Singapore becomes one of the world leaders in this area.
