Global Regulation of Decentralized Ledger Technology

Distributed Ledger Technology (“DLT”) can facilitate international cooperation between parties reluctant to rely on data generated outside of their own jurisdiction. By establishing decentralized and immutable registries, DLT can solve many challenges, including monitoring cross-border supply chains; implementing ‘cap and trade’ systems for gas emissions; and promoting investments in developing countries. To fulfill its potential, international use of DLT must be standardized and coordinated. However, national regulators have mostly opted to enact geographically bounded rules; thereby neglecting the international aspect and creating legal uncertainty. We address two key aspect: (1) how to overcome examining existing barriers to the development of global regulation by looking at other instances where global regulations did evolve (e.g. financial reporting, technological standardization, and anti-money laundering); (2) how to achieve an efficient regulation in terms of content.