Every solicitor in England and Wales will need to study blockchain technology, smart legal contracts, and cryptocurrency, the head of the Courts and Tribunals Judiciary said today.
The announcement comes after the launch of a new edition of authoritative guidance on the legal and regulatory aspects of the technologies underpinning digital currencies, such as non-fungible tokens (NFTs).
Published by lawyers and experts, the new guidance provides legal professionals with advice on emerging risks within the cryptocurrency sector and how they may impact wider areas of litigation and law.
Commenting on the guidance, Master of Rolls, Sir Geoffrey Vos, said: “Major developments are imminent. They will mean that every lawyer will require familiarity with the blockchain, smart legal contracts and cryptoassets.”
Anne Rose, founder of the Courts and Tribunals Judiciary working group, added: “We’ve made significant updates to the original edition, focusing on both recent and imminent developments, such as the launch of central bank digital currencies and the now mainstream use of cryptoassets and smart legal contracts – so we can continue to work together in unlocking the benefits of these technologies.”
Law Society president I. Stephanie Boyce welcomed the guidance, saying: “Distributed ledger technology, smart legal contracts and cryptoassets will likely form the infrastructure of the digital economy and basis for future transactions, which lawyers will continue to advise on.”
The rules come after the Government announced plans to tighten the rules on cryptoasset advertisements.
The measures – designed to protect consumers from misleading claims – will bring cryptocurrency marketing and advertising into line with other financial services promotions and subject to Financial Conduct Authority (FCA) rules.
According to the latest statistics, approximately 2.3 million people in the UK now own a cryptoasset – which can include anything from Bitcoin and Ethereum to security tokens and NFTs.
But research suggests that the overall understanding of cryptoassets among the general population is alarmingly low, increasing the risk of fraud, mis-selling, and loss.
Commenting on the new rules, Chancellor of the Exchequer Rishi Sunak said: “Cryptoassets can provide exciting new opportunities, offering people new ways to transact and invest – but it’s important that consumers are not being sold products with misleading claims.
“We are ensuring consumers are protected, while also supporting innovation of the cryptoasset market.”
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