Steve Tendon proposes fourth legislative bill
Christian Keszthelyi writes about the Security and Privacy Workshop at the Malta Blockchain Summit
Malta’s first three milestone bills have been in effect for little more than a day, yet Steve Tendon from Chain Strategies stresses that another one should follow suit, with the aim of regulating “legal personality.”
Tendon, who was hosting a workshop at the M-alta Blockchain Summit points out that some technological arrangements (TAs) are owned by a corporate structure, however other TAs might not have the same ownership structure. Mentioning the original blockchain of Bitcoin, he notes that although the white paper is credited to Satoshi Nakamoto, nobody knows who they really are. Should damages be caused to users, there is no one to be held liable.
As a result, Tendon describes a proposed legislation that would provide a solution for the aforementioned issue. The bill proposes that certan TAs will be able to register with the Registrar for Legal Persons in Malta and acquire a legal personality upon satisfaction of a number of requirements.
Dubbed as the Innovative Technology Foundations Bill, a TA would constitute a “universality of things” dedicated to a purpose to be achieved through a form of governance structure, either automated or physical. If the content and required actions and procedures are respected as required by law, it could qualify as a foundation having a legal personality, Tendon argues.
Under the bill, an innovative technology foundation may be constituted either by an instrument in writing or by means of a software code with the intention that such an arrangement is to be an innovative technology foundation upon registration with the Registrar of Legal Persons. He suggests that this might be one step closer to accountability and would increase trust in such a decentralised system.
The second day of the summit is buzzing with people discussing the blockchain and distributed ledger technologies. Despite blockchain being in its early years, people seem to unanimously agree that blockchain will significantly change how we think about technology in the future.
While there are many question marks related to the implementation of the blockchain, one thing is certain: it will take its shape from the mould we are creating now. The foundations of this appear to have been laid down in Malta’s three milestone bills which into effect yesterday, and equally efficient legislation is hopefully on its way to further raise certainty in a technology being governed by uncertainty.