in blockchain bills of lading. Furthermore, there must be sufficient monitoring of
developments in blockchain technology, especially with regard to legal issues and
infrastructure implications, to ensure that identity authentication, privacy protection
and protection of financial data are adequately maintained.
6.2 Regulatory Framework
An international regulatory development relevant to the legal recognition of Electronic Transferable Records (ETR) is the recent finalization of the deliberations of
the United Nations Commission on International Trade Law (UNCITRAL) Working
Group IV on Electronic Commerce. The end product is a Model Law on Electronic
Transferable Records (MLETR) adopted in July 2017.
40 The model law contains,
inter alia, the definition of an Electronic Transferable Record. Such record must
contain data and information identifying it as the functional equivalent of a transferable document or instrument, such as for example, bills of lading, receipts,
certificates and other documents used in shipping. The model law consists of four
sections; namely, General Provisions (Articles 1–7); Provisions on Functional
Equivalence (Articles 8–11); Use of Electronic Transferable Records (Articles
12–18); and Cross-border Recognition of Electronic Transferable Records (Article
19). It also sets out requirements to ensure the singularity and integrity of an
electronic transferable record, and its amenability to control from its very inception
until it ceases to have any effect or validity; in particular, requirements for its
transferability.
UNCITRAL has been dealing with various legal matters regarding the electronic
transferable record since 2017. They include issues relating to identity management
and trust services as well as contractual aspects of cloud computing.
41 It is evident
that throughout the development of the Rotterdam Rules
42 and the MLETR,
UNCITRAL has maintained the fundamental principles of technology neutrality
and functional equivalence.
43 The former holds that the law should not discriminate
between different technologies, that is, the law should neither require nor assume the
adoption of a particular technology,
44 enabling the use of various models whether
based on registry, token, distributed ledger or other technology.
45 There is no
mention of blockchain technology in the Rotterdam Rules or their travaux
40 The full text is available at UNCITRAL (2018).
41 Schedule of meetings of Working Group IV since 1997, published on the UNCITRAL website,
http://www.uncitral.org/uncitral/en/commission/working_groups/4Electronic_Commerce.html.
42 United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly
by Sea, 2008.
43 Takahashi (2016), p. 207.
44 UN General Assembly (2011), p. 10, para. 35.
45 UNCITRAL (2018), p. 23, para.18.
426
H. Liu
developments in blockchain technology, especially with regard to legal issues and
infrastructure implications, to ensure that identity authentication, privacy protection
and protection of financial data are adequately maintained.
6.2 Regulatory Framework
An international regulatory development relevant to the legal recognition of Electronic Transferable Records (ETR) is the recent finalization of the deliberations of
the United Nations Commission on International Trade Law (UNCITRAL) Working
Group IV on Electronic Commerce. The end product is a Model Law on Electronic
Transferable Records (MLETR) adopted in July 2017.
40 The model law contains,
inter alia, the definition of an Electronic Transferable Record. Such record must
contain data and information identifying it as the functional equivalent of a transferable document or instrument, such as for example, bills of lading, receipts,
certificates and other documents used in shipping. The model law consists of four
sections; namely, General Provisions (Articles 1–7); Provisions on Functional
Equivalence (Articles 8–11); Use of Electronic Transferable Records (Articles
12–18); and Cross-border Recognition of Electronic Transferable Records (Article
19). It also sets out requirements to ensure the singularity and integrity of an
electronic transferable record, and its amenability to control from its very inception
until it ceases to have any effect or validity; in particular, requirements for its
transferability.
UNCITRAL has been dealing with various legal matters regarding the electronic
transferable record since 2017. They include issues relating to identity management
and trust services as well as contractual aspects of cloud computing.
41 It is evident
that throughout the development of the Rotterdam Rules
42 and the MLETR,
UNCITRAL has maintained the fundamental principles of technology neutrality
and functional equivalence.
43 The former holds that the law should not discriminate
between different technologies, that is, the law should neither require nor assume the
adoption of a particular technology,
44 enabling the use of various models whether
based on registry, token, distributed ledger or other technology.
45 There is no
mention of blockchain technology in the Rotterdam Rules or their travaux
40 The full text is available at UNCITRAL (2018).
41 Schedule of meetings of Working Group IV since 1997, published on the UNCITRAL website,
http://www.uncitral.org/uncitral/en/commission/working_groups/4Electronic_Commerce.html.
42 United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly
by Sea, 2008.
43 Takahashi (2016), p. 207.
44 UN General Assembly (2011), p. 10, para. 35.
45 UNCITRAL (2018), p. 23, para.18.
426
H. Liu