Regulatory challenges to the use of distributed ledger technology: analysis of the compliance of existing regulation with the principles of technology neutrality and functional equivalence
Date
2021-05-04
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Abstract
Käesolev väitekiri käsitleb hajusraamatutehnoloogia (HT) kohtlemist Eesti ja EL õiguse alusel konkreetsete kasutusjuhtude näitel. HT on “mitmeotstarbeline tehnoloogia”, millel on rida erinevaid kasutusvõimalusi, sh. selle kõige tuntumad näited nagu plokiahelatehnoloogia ning bitimünt. Kuivõrd olemasolev õigusraamistik on loodud tsentraliseeritud infrastruktuuride ning mitte hajutatud andmestruktuuride jaoks nagu seda on HT, siis tihtipeale takistab olemasolev õigusraamistik HT kasutamist selles sisalduvate nii otseste kui ka kaudsete kallutatud nõuete tõttu. Nimetatud dissonants on sarnane analoogmaailma jaoks loodud õigusnormide takistava mõjuga digitaalsete lahenduste kasutuselevõtmisel. Seega ei ole väitekirjas käsitletavad takistused vaid HT-le omased vaid seotud iga uue tehnoloogia kasutuselevõtuga. Toodud probleemi uuritakseväitekirjas kolme konkreetse HT kasutusjuhu pinnal: (i) bitimündi vahetusteenuse osutamine; (ii) HT-põhise osanike nimekirja pidamine ; (iii) HT-põhise hübriid-targa lepingu ning elektroonilise allkirja kasutamine. Uurimise mõõdupuuna kasutatakse tehnoloogia neutraalsuse põhimõtet ning funktsionaalse samaväärsuse alampõhimõtet, et tuvastada kallutatud nõudeid ning piirata riigivõimu voli eelistada konkreetseid tehnoloogiaid samas teisi tehnoloogiaid diskrimineerides. HT kasutusjuhtude pinnal saab järeldada, et olemasolev õigsraamistik ei ole tehnoloogia-neutraalne ning eelistab tsentraliseeritud lahendusi ning ei taga HT-põhistele funktsionaalselt samaväärsetele lahendustele samaväärset kohtlemist. Arvestades toodud järeldusi uuritakse väitekirjas ka kallutatud nõuete põhjuseid ning strateegiaid kuidas jätkusuutlikult lahendada kallutatusest tekkinud takistused HT kasutusele. Väitekirja teema on oluline arvestades ka 2020. aasta lõpus avaldatud EL-i digitaalse finantspaketi määruste eesmärki, milleks on toetada HT kasutuselevõttu EL-is.
This dissertation focuses on the treatment of distributed ledger technology (DLT) applications under the existing regulation in Estonia and the EU based on the analysis of specific use cases. The existing regulatory frameworks in most jurisdictions were built for centralized infrastructures and not for distributed ones, such as built on DLT. Consequently, current legal frameworks may inhibit the use of DLT due to either apparent or non-apparent biases written into the regulation. DLT on the other hand represents a “general-purpose technology” that, therefore, has abundance of applications including its most well known examples of blockchain and Bitcoin. The discrepancy between old rules and new tools is nothing new as the development of the digital world in comparison to the physical world led to the same problem. Therefore, the research problem addressed in the dissertation is not specific to DLT, but linked to the uptake of any new technology. With the aim to explore the potentially inhibiting effect of existing regulation, specific DLT use cases are investigated: (i) bitcoin exchange-service provision; (ii) DLT-based shareholder ledger maintenance and (iii) use of DLT-based electronic signature and hybrid smart contract agreements. In this exploration, the principle of technology neutrality and its sub-principle of functional equivalence are utilized as benchmarks for the identification of biases. The aim of these principles is to prohibit regulators from favouring some technologies and discriminating against others. The use case analyses show that some of the existing regulation is not technology-neutral due to inbound bias for centralized solutions. Furthermore, effects equivalence is not granted by existing regulation to functionally equivalent DLT-based solutions. Against this background, the dissertation discusses the reasons for these biases and regulative strategies to resolve these in a sustainable manner. The dissertation is especially relevant considering the goal of the proposed EU regulations of the Digital Finance Package introduced in late 2020 to promote the use of DLT in the EU.
This dissertation focuses on the treatment of distributed ledger technology (DLT) applications under the existing regulation in Estonia and the EU based on the analysis of specific use cases. The existing regulatory frameworks in most jurisdictions were built for centralized infrastructures and not for distributed ones, such as built on DLT. Consequently, current legal frameworks may inhibit the use of DLT due to either apparent or non-apparent biases written into the regulation. DLT on the other hand represents a “general-purpose technology” that, therefore, has abundance of applications including its most well known examples of blockchain and Bitcoin. The discrepancy between old rules and new tools is nothing new as the development of the digital world in comparison to the physical world led to the same problem. Therefore, the research problem addressed in the dissertation is not specific to DLT, but linked to the uptake of any new technology. With the aim to explore the potentially inhibiting effect of existing regulation, specific DLT use cases are investigated: (i) bitcoin exchange-service provision; (ii) DLT-based shareholder ledger maintenance and (iii) use of DLT-based electronic signature and hybrid smart contract agreements. In this exploration, the principle of technology neutrality and its sub-principle of functional equivalence are utilized as benchmarks for the identification of biases. The aim of these principles is to prohibit regulators from favouring some technologies and discriminating against others. The use case analyses show that some of the existing regulation is not technology-neutral due to inbound bias for centralized solutions. Furthermore, effects equivalence is not granted by existing regulation to functionally equivalent DLT-based solutions. Against this background, the dissertation discusses the reasons for these biases and regulative strategies to resolve these in a sustainable manner. The dissertation is especially relevant considering the goal of the proposed EU regulations of the Digital Finance Package introduced in late 2020 to promote the use of DLT in the EU.
Description
Väitekirja elektrooniline versioon ei sisalda publikatsioone
Keywords
blockchain technology, legal aspects