The following does not constitute legal advice. All relevant issues cannot be considered. The assumption is that, where appropriate, miners will consult with their legal advisers and any other adviser they deem appropriate.
What legal frameworks and precedents support the implementation of the Network Access Rules (NAR) on a blockchain network?
Advice has been taken and every effort made to ensure that the implementation of the NAR is supported by traditional English law contract principles, such as those underlying contracts intended to have multilateral effect. NAR concerns an expanding universe of participants where engagement in relevant activities (including network activities) confirms acceptance. The NAR structure and language draws significantly on established precedents in this regard from the derivatives and other global financial markets.
How does the BSV Association (BSVA) plan to address potential legal challenges or disputes related to the Network Access Rules?
The Network Access Rules include arbitration as a preferred mechanism for dispute resolution.
What is the process for resolving legal disputes concerning digital assets to be frozen or reassigned, or digital assets which have already been frozen or reassigned?
BSVA may issue a directive requiring miners to freeze or reassign digital assets provided this does not contradict the various restrictions on the BSVA’s power to do so in the NAR. An example of where the BSVA is likely to do so is where it is served with a court order or arbitral decision which it is binding on it and enforceable in Switzerland or England & Wales. BSVA itself does not resolve any underlying disputes concerning digital assets on the BSV network. Where it chooses to act, its role is akin to that of an enforcing body.
If a miner does not agree with freezing or reassignment of specific digital assets by BSVA, it is free to request that BSVA review the case. Miners are also empowered to commence arbitration under NAR should they consider that their rights under NAR have been violated. Arbitration is frequently used in contractual disputes, and is particularly useful in the context of debates involving specialist subjects such as digital assets.
Can the Alert System be considered a form of digital asset regulation, and if so, how does it comply with existing regulatory standards?
No. The Alert System operates as a contractual mechanism aimed at enforcing the NAR and ensuring network integrity within the BSV network. Compliance with broader regulatory standards is, however, supported by a broader undertaking in the NAR that requires adherence with all applicable laws.
What legal regimes govern the implementation of the Network Access Rules on a global blockchain network?
The interpretation of the Network Access Rules (NAR) is governed by English law. Miners also commit to comply with all other applicable laws as defined in the NAR. The enforceability of orders and decisions made or recognised by English or Swiss courts is also expressly contemplated.
Are there any legal protections in place for individuals or entities affected by asset freezes or recoveries?
The Network Access Rules (NAR) provide a limitation of liability clause that offers legal protections to individuals or entities complying with directives in good faith.
By what legal standards are the actions and responsibilities of alert key holders and the BSV Association to be judged?
The actions and responsibilities of alert key holders and the BSVA are aligned with legal standards, ensuring that directives are issued in a manner that is reasonably determined in good faith. The BSVA, as the entity ultimately responsible for how Alert System is used on the BSV network is also bound by the NAR and Swiss law.
How does the BSV Association ensure transparency and accountability in its regulatory role on the BSV network?
The BSVA fosters transparency and accountability by making the Network Access Rules (NAR) publicly available, following due process for issuing directives and regularly making relevant information available to nodes and other interested parties. These due processes mirror the transparency expected in multilateral contexts.
Are there any legal obligations for network nodes in different jurisdictions regarding compliance with the Network Access Rules?
Nodes are obligated to comply with the NAR and with applicable laws in their jurisdictions. This obligation reflects a recognition of the varied legal landscapes in which nodes operate and the need for the NAR to be adaptable to different legal systems. There may be instances where assets are known to be transferred in or out of sanctioned jurisdictions. Specific legal advice may be sought by the BSVA for how to direct actions in countries that have and have not ratified the sanctions.
However, here again, the facts will always be important, and guidance as to all relevant considerations cannot be given. The assumption is that, where appropriate, miners will consult with their legal advisers and any other adviser they deem appropriate.
Disclaimer
The content of this document is provided for informational purposes only and is not intended to modify or supersede the contractual rights or obligations of any party to the Network Access Rules. Parties are encouraged to carefully review the Network Access Rules to verify the accuracy of the information presented here. It is assumed that, where necessary, parties will seek guidance from their legal counsel and any other advisors they consider necessary.
Any statements here do not purport and should not be considered to be a guide to, advice on, or explanation of all relevant issues or considerations relating to the contractual relationship established by the NAR. The BSV Association assumes no responsibility for any use to which the BSV network is put by any miner or other third party.
