Legal Governance of Smart Contracts : Focus on the Analysis of Regulatory Cases in Different Countries

Abstract

Blockchain-based smart contracts have received a lot of attention recently. Smart contracts are increasingly being used in a variety of fields, and are touted for their ability to reduce costs, ensure contract fulfillment, and provide high security. This has led to the view that smart contracts can replace existing contracts. However, there is also a negative view that smart contracts are unlikely to replace existing contracts and will only be used in limited areas, citing the limitations of the code itself, the existence of bugs, and the possibility of hacking. These conflicting views reflect the fact that the smart contract debate is far from settled and many issues, such as the legal nature of smart contracts and the legal issues that have arisen or may arise from smart contracts, are still unclear. In this article, we will discuss the legal regulation of smart contracts, among other issues related to smart contracts. Recently, several countries, including some states in the U.S., have moved to incorporate smart contracts into their legal systems, which seems to be a way to provide a legal basis for the future use of smart contracts and the development of related technologies, as well as to regulate them through legislation. The need for legal regulation of smart contracts can be seen in the need to introduce the concept of cryptocurrencies or smart contracts, and to prepare for the possibility that transactions using smart contracts will be activated in the near future. The direction of legal regulation can be broadly categorized into enacting a basic law on smart contracts in the form of a single law, and amending individual laws related to smart contracts. This article opts for the enactment of a basic law on smart contracts in the form of a single law, and discusses factors to be considered when enacting a so-called basic law on smart contracts, as well as what a specific law should look like.