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.
Spanish banking group BBVA has released a new research note on the subject of bitcoin and blockchain regulation.
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".
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 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.
"There are some questions that are common to all cases, deriving from the unique characteristics of blockchain, which should be addressed as soon as possible."
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.
Man with pen image via Shutterstock
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