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Technologies such as Blockchain, Bitcoin and Smart Contracts are driving fundamental changes in various industries, from finance to the supply chain. However, these innovations present significant legal complexities that require specialised attention to ensure their proper implementation and adoption.

The legal environment for cryptocurrencies and blockchain technology varies widely globally. Jurisdictions have different approaches, ranging from favourable regulatory frameworks to restrictive regulations. It is essential that companies and individuals operating in this space understand and comply with local laws. This includes specific regulations on the issuance and trading of cryptocurrencies, as well as the obligation to comply with anti-money laundering (AML) and know your customer (KYC) standards.

Validity and Enforceability of Smart Contracts

Smart contracts, known as self-executing agreements encoded in blockchain, present unique challenges and opportunities in legal terms. Although these contracts can be automatically executed without intermediaries, their legal validity depends on several factors:

Local Law Compliance: the terms of the contract must comply with the law in force in the relevant jurisdiction.

Contractual Intent and Consent: The parties must have a clear intent to create a legally binding agreement and provide informed consent.

Legal Capacity: The parties involved must have the legal capacity to enter into contracts.

Intellectual Property and Blockchain

Blockchain technology can revolutionise intellectual property management by providing an immutable record of the creation and transfer of rights. However, it is crucial to consider:

Copyright Protection: Using blockchain to register copyrights can provide irrefutable proof of creation and ownership, but it must also align with intellectual property laws.

Licensing and Distribution: Blockchain platforms must properly manage the licensing and distribution of copyrighted content.

The immutable and transparent nature of blockchain poses unique challenges in terms of privacy and data protection. Organisations must ensure that their blockchain-based solutions comply with data protection regulations, such as the General Data Protection Regulation (GDPR) in the European Union.

Among the considerations included are ‘anonymisation and pseudonymisation’, aimed at implementing techniques to protect the identity of individuals. In addition, it addresses the ‘right to be forgotten’, which is used to assess how data deletion requests can be complied with in an immutable system.

Anti-Money Laundering (AML) and Know Your Customer (KYC)

Cryptocurrencies can be attractive for conducting illicit activities due to their pseudonymous nature. It is critical that entities operating in this sector implement robust AML and KYC policies to verify the identity of their users and monitor their activities, as well as detect and report suspicious transactions.

Master in Blockchain and Smart Contracts

Blockchain, Bitcoin and Smart Contracts have the potential to transform numerous sectors, but their adoption must be accompanied by a thorough understanding and proper management of legal considerations. Developers, businesses and regulators must collaborate to create a legal and secure environment that fosters innovation and protects all stakeholders.

To delve deeper into this area, the University of Salamanca proposes the Master in Blockchain and Smart Contracts, which allows to strengthen professional skills in the application of this technology in the business and industrial sector, in scenarios such as finance and logistics.