The UK Jurisdiction Taskforce issued a new report named “Digital Dispute Resolution Rules” (DDRR) on Thursday. The aim is to efficiently resolve disputes in crypto assets, smart contracts, cryptocurrency, distributed ledger technology, and fintech applications. The document reveals that rules appear from the ever-developing requirement in the industry of a discrete set of rules to guide disputes. Moreover, the Jurisdiction Taskforce describes these new rules as groundbreaking in their abilities.
DDRR is outlined in comprehensive private and public consultation with technical experts, technical experts, financial services, and commercial parties. A fundamental characteristic of the rules is that they enable parties to settle their disputes via an arbitrator instead of a judge in court. Moreover, the UK Jurisdiction drafts the rules to offer maximum flexibility to adjust to undeveloped technologies. Furthermore, it helps strike a resolution to conflicts swiftly and efficiently by arbitrators with adequate technical expertise and allowing the on-chain implementation of decisions.
Significant Objectives of DDRR
Furthermore, two of the fundamental objectives of the DDRR are efficient dispute decision and the alternative for opposing parties to remain anonymous during the hearing. Hence, in terms of efficiency, the tribunal should resolve the dispute in default 30 days from its appointment. It also mentions unless or otherwise consented upon by the parties or individuals. This window is lower than regular institutional hearings. Besides, DDRR mentions resolving the disputes in written instead of oral submissions.
Moreover, the DDRR enables those involved to remain anonymous through the dispute resolution process, to be in line with anonymous transactions on the blockchain. Further, in such a matter, the names of those included are provided only to the panel. On the one hand, these rules provide legal guidelines or pathways to solving digital disputes. Nevertheless, they also offer governing bodies more control over autonomous users and investors in the space.
However, the UK recently came out with a range of new bans, regulations, and taxes directed at those prevailing in the space of digital assets. These bureaucratic improvements assisted some companies, like ByBit, a leading crypto trading platform, to cease their operations in the UK. Moreover, we wait to see if the new Digital Dispute Resolution Rules rules are a step towards cryptocurrencies mainstream adoption and integration, or it is yet another barrier for those functioning in the space.