The Risk And Legal Regulation Of Smart Contracts In The Securities Industry

The issuance of bitcoin has introduced blockchain technology into the public’s vision,and the smart contract based on blockchain technology has opened the era of blockchain 2.0.Due to its decentralized operation logic,with certainty,consistency and other technical characteristics,it has received extensive attention and a large number of innovative practices in various fields,especially in the financial field.With the continuous exploration of Internet companies and financial companies,smart contracts have shown unique technical advantages and broad application prospects in the securities industry.Smart contracts in the securities industry have become an inevitable choice under the international trend and China’s policy guidance.However,as an emerging technology,smart contract still has many deficiencies and risks.There is no special provision for smart contract in China’s law.There is also a certain conflict between the rules and principles of the current contract law,securities law and other laws and the technical characteristics of smart contract.Based on this,this paper is committed to combining the structure and characteristics of smart contracts,paying attention to and thinking about smart contracts in the securities industry,and exploring the legal regulation ways of smart contracts in the securities industry.Part 1 introduces the theoretical basis of smart contract in securities industry.Firstly,it summarizes the smart contract,briefly describes the emergence and development process of smart contract,analyzes the structure of smart contract,and analyzes the technical characteristics and unique advantages of smart contract.Then,it introduces the application of smart contracts in the securities industry,including the interpretation of the application scenarios of smart contracts in the securities industry by industry-leading enterprises and national official institutions,as well as sp ecific cases of innovative application practices of smart contracts in the securities industry.Part 2 systematically analyzes the risk of smart contract in securities industry,which is divided into two levels:technical risk and legal risk.At the level of technical risk,it mainly expounds the limitations of code and code vulnerabilities,the problem of computing power attack,and the problem of Oracle for information interaction with reality.At the level of legal risk,this paper discusses the legal nature of smart contract,the application of traditional contract law and traditional securities law.Part 3 explores the legal regulation ways of smart contracts in the securities industry.It mainly follows the following ideas:first,clarify the legal concepts related to smart contracts in the securities industry,including the legal nature of smart contracts in the securities industry and the definition standards of smart contract securities products;Second,formulate technical specifications for smart contracts in the securities industry,including code conversion standards and templates,compliance inspection function of the platform and contract termination function;The third is to establish the management system of smart contracts in the securities industry,including the qualification examination of the platform,the introduction of regulatory sandbox and the establishment of smart contract risk fund in the securities industry.In the process of writing,this paper mainly uses the following three kinds of research methods:first,literature reading method,through reading and sorting out relevant works,papers and reports,systematically understand and think about the theoretical basis of smart contract,its application prospect and current situation in the securities industry,risks and legal regulation approaches;Secondly,the cross-study method.The smart contract in the securities industry involves many disciplines such as finance,computer and law.This paper makes a multi angle cross research based on the legal theory and combined with the theories of other disciplines;Third,comparative-study method.Some regulatory measures of other countries and international common practices have a certain reference value for the legal regulation of smart contracts in China’s securities industry.This paper will analyze whether and how various regulatory measures are applicable in China through the comparison of laws and policies at home and abroad.