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Top Chinese Lawmaker Pushes for Clear Rules on Smart Contracts

Published 10/03/2024, 13:37
Updated 10/03/2024, 13:45
© Reuters.  Top Chinese Lawmaker Pushes for Clear Rules on Smart Contracts

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  • Chinese lawmaker Dong Jin advocates for clear regulations on smart contracts.
  • Jin stressed the essence of managing risks associated with technological progress.
  • The push for legislation aims to address uncertainties and promote healthy, high-quality growth in the digital economy.

During the Chinese National Two Sessions, Dong Jin, a key National People’s Congress representative, highlighted the urgency of accelerating legislation for emerging technologies like blockchain.

Speaking with journalists, Jin stressed the vital role of legislation in managing risks associated with technological progress to establish clear legal guidelines and create a favorable policy environment for businesses and individuals. According to him, this proactive approach aims to steer the digital economy towards healthy and high-quality development.

Moreover, Jin particularly emphasized the changing legal framework surrounding blockchain applications. He pointed out inconsistencies between current regulations and the evolving requirements of emerging technologies.

Meanwhile, Jin outlined the potential applications of smart contracts, a hallmark feature of blockchain technology, in finance, supply chain management, and beyond. However, uncertainties surrounding smart contracts’ legal validity, privacy concerns, and vulnerabilities hinder their widespread adoption and effectiveness.

To tackle these obstacles, Jin suggested a comprehensive strategy. Firstly, he proposed clarifying the legal standing of foundational blockchain technologies and implementing pertinent laws and regulations. This step is expected to offer essential legal safeguards, supporting the broader implementation of blockchain advancements.

Secondly, Jin stressed the significance of creating a cohesive legislative and regulatory framework to harmonize technological progress with oversight. He believes flexible and efficient regulatory approaches incorporating risk evaluation and continuous monitoring are crucial for mitigating potential risks in the market dynamism.

Besides, Jin highlighted the imperative of international cooperation to support the cross-border application of emerging technologies.

Meanwhile, Jiang Fan, a National People’s Congress deputy, has expressed a similar sentiment. In an interview with Rule of Law Daily, he stressed the urgent need to improve China’s virtual currency disposal system.

Fan pointed out the increasing complexity of legal proceedings related to virtual currencies and emphasized the need for thorough reforms. He pointed out the surge in criminal activities such as fraud, money laundering, and terrorism utilizing virtual currencies.

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