Creation of new contractual framework for the BSV Network promotes the security, integrity and long-term stability of its operations
28th February 2024: Jeffrey Golden KC (Hon), James Gale and Nicholas Leah of 3 Hare Court Chambers and Akber Datoo, Lisa McClory and Emma Wooldridge of D2 Legal Technology (D2LT), acted for the BSV Association in connection with groundbreaking Network Access Rules, which govern the activities of nodes on the BSV blockchain.
The BSV blockchain aims to fulfil the vision of the original Bitcoin protocol rules and four pillars: stability, scalability, security, and safe instant transactions. The Network Access Rules support this vision by providing a clear and reliable legal framework for mining activities, taking effect as a multilateral contract between and among the BSV Association, as network steward, and all nodes.
“By codifying the Network Access Rules into a clear legal framework, the BSV Association can ensure the original Bitcoin protocol remains set in stone and unaltered by any single entity, while establishing a transparent framework for the BSV Association to implement any needed rules, such as Digital Asset Recovery, to ensure the BSV blockchain is compliant with existing regulatory requirements,” said Connor Murray, Director of Stewardship at BSV Association, when reporting out publication of the Network Access Rules. “A huge thanks to the teams from 3 Hare Court and D2LT for their amazing work on this project.”
Drawing on his strong background in digital assets law and practice, James Gale, 3 Hare Court, commented: “Many commentators have brought up the governance challenges of decentralised networks, such as the difficulty of combatting cross-border crypto fraud. The Network Access Rules include an arbitral process and enforcement mechanisms, providing a straightforward means of resolving disputes and enhancing legal compliance across the global network.”
As experts in multilateral contracts in the capital markets context, the advisory team worked with the BSV Association to create an innovative solution, leveraging their expert understanding of relational contracts and blockchain technology.
According to Jeffrey Golden KC (Hon), 3 Hare Court: “The structure and language of the Network Access Rules draw significantly on established precedents from the derivatives and other global financial markets.”
Akber Datoo, CEO, D2LT, adds: “The Network Access Rules equip nodes with clear and effective processes for their mining activities on the BSV network. This protects network security and enables a much greater level of certainty over the network’s stability and efficiency.”
They jointly conclude: “As an interdisciplinary team, we are delighted to have been able to advise on and support the creation of the Network Access Rules which will allow the BSV blockchain to continue to grow in a steady, more certain, and transparent fashion, an absolute imperative to ensure wider adoption of blockchain technology by enterprises and governments.”
Notes to Editors
About D2 Legal Technology (D2LT)
Award-winning legal data consulting firm, D2 Legal Technology (D2LT), sits at the intersection of FinTech and LegalTech, acting as a trusted advisor to institutions on process, data and the use of technology to unlock business value through legal change. Through its wealth of experience across legal, documentation, technology, digital assets and change management, it is at the forefront of the digitisation of capital markets master trading documentation and legal opinions.
D2LT focuses on embracing the digital agenda and helps clients to understand, select and configure the tools that sit in this LegalTech/FinTech ecosystem. These include contract management, document assembly, workflow, optical character recognition (OCR), artificial intelligence (AI)/machine learning, blockchain/distributed ledger and smart contracts. Our approach is to advise clients how to refine and optimise processes and structure data effectively before employing enabling technology since this is typically a precondition to maximising the value of such solutions. Our clients in the digital assets space include BlockFi, the Philippines SEC, ISDA and ISLA.
Akber Datoo, the CEO and founder, advises at the intersection of FinTech and LegalTech to achieve business optimisation, regulatory compliance and operational efficiencies. Having founded D2LT in 2011, he acts as a trusted advisor to a number of investment banks, asset managers, regulators and trade associations, including advising ISDA, ICMA and ISLA on legal agreement digitisation, leading their clause taxonomy and library projects. Akber sits on Law Society’s Technology Law Committee where he chairs the digital assets and smart contracts sub-committee and is a PRIME Finance Expert. He is the author of the Wiley textbook, Legal Data – Banking & Finance, published in May 2019 and has written chapters on Smart Contracts and Contract Optimisation in the best-selling Wiley InsurTech and FinTech books, as well as being the co-editor of the LegalTech book in this series (published in June 2020). In 2019, Akber was recognised as “one of the top ten market shapers” in the Financial Times Intelligent Business Awards and by Waters Technology in 2021 for the development of an industry netting counterparty type utility. He is a professor at the University of Surrey, teaching “Law & Technology”, “Artificial Intelligence & Ethics” and “Financial Services Regulation and FinTech Policy” to final year undergraduate students of the School of Law and students on the AI Masters Msc.
Lisa McClory is a Senior Consultant at D2 Legal Technology, specialising in digital assets and distributed ledger technology. She advises a wide range of projects on cryptoasset compliance and regulation, including protocols, dapps, developers, financial institutions, governments and industry bodies. Lisa has 17+ years experience of advising on a range of multinational corporate and digital projects, and brings together a detailed understanding of technology with a strategic understanding of regulatory risks and opportunities.
Emma Wooldridge is a consultant at D2LT with experience in capital markets. This includes trading documentation across a number of client projects, such as development of legal agreement databases, document review exercises, and assisting with the linkage between trade confirmations and their related master trading agreements and collateral arrangements.
About 3 Hare Court
3 Hare Court is quickly establishing its place in the market of cryptoassets. Members have acted in complex and cutting-edge matters involving cryptocurrency litigation and arbitration, fraud, blockchain tracing, freezing injunctions and compliance; as well as advising on regulation for new technologies. 3 Hare Court is a prominent set of specialist barristers. Collectively, we offer a full range of advocacy and advisory services to a wide variety of clients in Commercial, Insolvency, Banking & Finance, Derivatives & Financial Product Litigation, Civil Fraud, Aviation & Travel, Arbitration, Professional Negligence, Employment, Sport, Public Inquiries, and Property. With a dedicated focus on achieving the best possible outcomes, we are committed to providing exceptional quality work tailored to each client’s unique needs.
Jeffrey Golden KC (Hon) is a specialist arbitrator, mediator and expert with broad experience of a wide range of capital markets matters, including swaps and derivatives, international equity and debt offerings, US private placements and listings, and mergers, acquisitions and joint ventures. He has acted extensively for the International Swaps and Derivatives Association (ISDA), was a principal author of ISDA’s master agreements and has appeared as an arbitrator, mediator and as expert witness in several high-profile derivatives cases. In 2020, he received the inaugural Lifetime Contributor – Private Practice Award at Law.com/Legal Week’s Legal Innovation Awards ceremony
James Gale has been deeply engaged in the digital assets/blockchain space since 2017. He also contributes his expertise in digital assets as a legal consultant for the Bank of England. He is recognised as a leading barrister in ‘crypto and blockchain assets’ matters.
Nicholas Leah is quickly developing a broad practice in banking, financial services and cryptoassets disputes. He studied international financial law to an advanced level and has sound knowledge of the law surrounding syndicated loan agreements, international bond issues, derivatives and securitisation. He is particularly interested in cryptocurrency and blockchain related matters, drawing on his wider experience of commercial, banking & finance and civil fraud work.