Spanish banking group BBVA has released a new research note on the subject of bitcoin and blockchain regulation.
Published on 2nd January, the note opines on the current state of regulation, arguing that rules for private blockchain use cases lag behind guidance for bitcoin – the digital currency it called the one blockchain application "in practical operation".
The document's author, BBVA digital regulation manager Javier Sebastián, contends that regulation will be needed to oversee enterprise blockchain use cases. However, he acknowledged that the current "exploratory phase" the technology is in makes this difficult to address.
Overall, the note argues for more immediate action to clarify issues that could hold back the launch of blockchain projects, calling for "a legal framework in which its legal nature is defined, including the applicable jurisdictions and laws, as well as where responsibility lies in the event of error or malfunction".
Elsewhere, the author contends that clarity is needed in regards to the legal validity of records stored via a blockchain and whether smart contracts are legally enforceable.
The research is the latest from the blockchain bank that emerged as one of the earliest institutional movers on the technology, investing in Coinbase and serving as a founding member of blockchain consortium R3CEV.
Man with pen image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.