The Blockchain Arbitration Society is…
an initiative born from a group of professionals with international experience in the legal, technological, industrial and electrical sectors. We believe that blockchain technology is a simpler, more efficient, agile and competent alternative to structure commercial relations and conflict resolution for our clients.
A private law association, legally constituted and formed by members of the community to be able to resolve internal conflicts. In other words, a legal environment that respects, promotes and resolves crypto problems from within.
Through an Association of members of the legal and technological environment, to whom we offer training in this new technology, networking, audits and quality seal, in addition to being the first Legal Oracle to grow this community in a legal and secure framework. Security is guaranteed by a specialized, internationally recognized Arbitration Court, whose awards are enforceable in any court in the world.
Because current law is not prepared to take on this new technology. Classical legal systems resolve conflicts between hierarchical and centralized organizations, but this new technology requires a new concept of law. The blockchain, like smart-contracts and tokens surpass the current regulatory system.
The BAS will generate a crypto legal community that, while respecting the private and autonomous law that emerges in this new context, resolves private conflicts in a secure and transparent way. In the crypto world, the regulation is the community itself, so the community must create and respect its own law.
The crypto world requires new institutions that recognize and take care of this new law that is emerging. Institutions like the BAS are necessary to be able to provide an environment of legality to blockchain technology and the crypto world.
To move decentralized and crypto securities into the legal environment.
Decentralized initiatives require legal solutions born from a community that believes in decentralization. Our arbitrators, experts in law and crypto, are trained to judge this new nature of conflicts.
Welcome to BAS, the world’s first virtual crypto jurisdiction.
Ignacio Ferrer-Bonsoms Hernández
On January 3rd, 2009 the Bitcoin ball began to roll in a new game with original rules. Until now those rules have never been seen in the history of mankind. Perhaps the defining characteristic of this new game is that there are no referees involved. One might wonder how a serious game – the issuance of a digital currency – can work without the supervision of a judge. Our mentality does not conceive that the community, made up of all those who appear in the stadium are the ones who validate each action of the game. If something is not approved, the ball does not advance. And once approved, it cannot be reviewed.
Do we need the state to regulate this new phenomenon? In part yes, in part no. The crypto world is openly wondering how the state is going to regulate cryptocurrencies and when regulation will come. The years continue to pass and the rules continue to come, in part because of the disruption of this new technology.
Before handing over the regulatory aspect to the state, which is our natural tendency, we should answer these questions: what is the proper law of cryptocurrencies? What kind of law fits into bitcoin? What law can respect and respond to this new community that advocates a decentralized government?
Bitcoin is self-regulating in the first place. Some who are opposed or ignorant cry out: Bitcoin is not regulated, it is dangerous! But the truth is that yes, Bitcoin is regulated. And it is regulated by itself, and by the community that supports it. Bitcoin does not exist because the state and governments have studied and determined its emission and operation before seeing the light. It was simply offered to a tiny community, informing them of its non-modifiable programmed rules (unless agreed by the majority of nodes). From a legal point of view, Bitcoin contains the basic norms and rules of operation, which means that it is self-regulating. Hence Bitcoin will remain what it is regardless of what the state decides. This approach, allowed by the technique, totally breaks with more than five hundred years of centralized organization around the state. Now, and this is what Bitcoin tells us, we can organize ourselves without the chains of the state bureaucracy, in a more secure, transparent, efficient and profitable way.
Second, Bitcoin is private law, in the sense of being the opposite of “public law.” It is not issued by the state. The consequence of this reality is crucial. Now it is the community who decides whether or not Bitcoin has value (not the state); whether or not Bitcoin is money (not the state). With Bitcoin we are witnessing a return to the “sovereignty of individuals”, that is, the sovereignty of the community. This being the case, the law will be what the community says it is.
Third, Bitcoin is autonomous law, that is, it survives by itself and is for itself, without the need for third parties. The elimination of the trusted third party, the great contribution of Bitcoin, supposes a break in the need for hierarchical and centralized organizations. This also affects the law that regulates it.
Fourth, Bitcoin is non-derogable. Technically at this time it is non-derogable. It is modifiable if approved by the majority. In that sense, it would be like the constitution of a country, which requires a majority for its modification. All the states of the world could meet and for the first time in history agree on something, for example to increase the number of Bitcoin that can be mined from 21 million to 100 million. Despite this, the number of Bitcoin that could be mined would remain 21 million. Bitcoin is more robust than the constitution of a modern state. Bitcoin is more robust even than the will of all the states of the world! And that means that the state today is not as strong as it was before January 3rd, 2009. One could argue that Bitcoin is set in stone, but better yet, Bitcoin is written on blockchain.
The crypto community must grow and mature. Therefore, the BAS proposes a legal environment that respects, encourages and solves crypto problems from within, not leaving it in the hands of outsiders. It is concluded that a private law association, legally constituted, formed by members of the community, will be able to resolve the internal conflicts that arise. This is done through an Arbitral Court, internationally recognized, and whose decisions are enforceable all over the world.
Most of the proposals in the crypto world have revolved around fungible tokens (erc20 in the case of Ethereum). Now the challenge is to tokenize real assets, which requires legal support. But our law is not prepared to take on this type of technology. Our legal systems resolve conflicts that arise from hierarchical and centralized organizations. The purpose of BAS is to be a new legal framework created by the community which addresses these new proposals. A new technology requires a new legal framework. What is the point of a notary in a contract signed on the blockchain? What role does a civil registrar serve on a tokenized property? What function does a commercial registry fulfill in a tokenized commercial company? Both the blockchain, as well as the Smart-contracts and the tokens, overcome this regulatory system that is anachronistic.
The BAS intends to generate a crypto legal community, with jurists, lawyers and arbitrators (judges) that, respecting the private and autonomous law that arises in the crypto space, resolves the private conflicts that arise from them. It is absurd to leave the resolution of conflicts of private and autonomous law in the hands of central entities. Would a state court resolve a tokenization dispute of a hereditary right issued in an ERC20 token on the Ethereum network? Would a judge be able to understand that a DAO has breached an agreement adopted by a governance token vote? But what is more serious, is a hierarchical and centralized structure capable of solving private law conflicts based on decentralization?
The crypto community must mature. Be aware that regulation has already arrived, and we have it right in front of us, right under our noses. The regulation is the community itself, it is the protocol that obeys its own programmed norms. It is time for the community to realize who it is. It is time for the community to believe and respect its own law, not leaving its future in the hands of trusted third parties. The state will of course regulate, but only to establish the red lines that cannot be crossed. Whoever merely waits for the State to adopt and integrate this new technology into its system will be the Don Quixote of the 21st century.
With Bitcoin a new law is born. This new legal framework will embrace this new technology. Bitcoin has already told us at its creation: I do not depend on the state, I depend on the community. It is the community that creates this new legal framework, not the state. If the community did not believe in Bitcoin, it would die; Whether the state believes in Bitcoin or not, it doesn’t matter, Bitcoin will still be alive.
That is why the Blockchain Arbitration Society was born and we invite all of you to join the BAS and become part of the world’s first virtual crypto jurisdiction.