Legal Nature and Classification of Smart Contracts in Crypto Exchanges: Challenges to Traditional Contract Law
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https://doi.org/10.59022/ijlp.224Keywords:
Smart Contracts, Blockchain Technology, Cryptocurrency Exchanges, Contract Law, Legal Classification, Regulatory ChallengesAbstract
This paper examines the legal nature and classification of smart contracts within the context of cryptocurrency exchanges, exploring the challenges they pose to traditional contract law. As blockchain technology continues to evolve, smart contracts have emerged as a novel form of agreement execution, blurring the lines between code and legal obligations. This study analyzes the unique characteristics of smart contracts, including their self-executing nature, immutability, and decentralized structure, and how these features interact with established legal principles. The research investigates the potential gaps in current legal frameworks and the difficulties in applying traditional contract law concepts such as offer, acceptance, consideration, and breach to smart contracts. Furthermore, it explores the jurisdictional and enforcement issues that arise in the decentralized and borderless realm of crypto exchanges. By synthesizing legal theory, technological understanding, and practical implications, this paper aims to contribute to the ongoing dialogue on how to effectively regulate and integrate smart contracts into existing legal systems, while addressing the specific challenges they present in the dynamic landscape of cryptocurrency exchanges.
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