New tech, old law The interaction of blockchain and legal practice Hannah Glass

Technology driven world Proliferation of blockchain technology Technology driven world ? ? ? ? ? ? ? ? ? ? ? ? ?

If … then … //{code is law} if code == law and code == flaw: Smart contracts If … then … //{code is law} if code == law and code == flaw: flaw = law

Sample of current projects. What are people doing with blockchain Sample of current projects. Used to manage:  Fraud risk  Transparency  Transferability  Cyber risk  Financial risk  Authenticity  Operational risk  Predictability Intermediation Digitisation and other things too. Provenance Supply chain Payments Health records Derivatives Trade finance RegTech AML / KYC identity Clearing Distributed energy Digital currency Welfare payments

Law is technology neutral Blockchain in the courts Law is technology neutral Fraudulent, misleading or deceptive Class actions Jurisdiction Liability Taking security over digital assets Proceeds of blockchain Bankruptcy and insolvency Divorce Probate Arbitration

HANNAH GLASS Senior associate T +61 2 9296 2069 M +61 421 175 274 hannah.glass@au.kwm.com Further reading: 10 points on Initial Coin Offerings (ICOs) Australian government consults on ICOs "Know Your Token": A guide to participating in token sales Standards Australia releases Roadmap for Blockchain Standards China's ICO Ban: the future of digital asset transactions Australia’s leading role in International Blockchain Standards Design-thinking a blockchain healthcheck 10 things you need to know about blockchain in finance & financial markets Navigating the blockchain path: Australia’s ASIC releases guidance 10 things you need to know about smart contracts ICOs a dripping roast for disputes lawyers How to use humans to make smart contracts truly smart KWM fintech library (holds a range of additional material)

Blockchain in 10 points. Appendix: a brief blockchain explainer. It is more than Bitcoin. It is a transaction record … independently verified by others … and held on a distributed ledger. It does not need an open system ... or a token or coin. It can increase efficiency and safety … and could be welcomed by regulators. Smart contracts amplify its potential … but there is still some work to do.