The alegality of blockchain technology

Primavera De Filippi, Morshed Mannan, Wessel Reijers*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract / Description of output

Similar to the early days of the Internet, today, the effectiveness and applicability of legal regulations are being challenged by the advent of blockchain technology. Yet, unlike the Internet, which has evolved into an increasingly centralized system that was largely brought within the reach of the law, blockchain technology still resists regulation and is thus described by some as being “alegal”, i.e., situated beyond the boundaries of existing legal orders and, therefore, challenging them. This article investigates whether blockchain technology can indeed be qualified as alegal and the extent to which such technology can be brought back within the boundaries of a legal order by means of targeted policies. First, the article explores the features of blockchain-based systems, which make them hard to regulate, mainly due to their approach to disintermediation. Second, drawing from the notion of alegality in legal philosophy, the article analyzes how blockchain technology enables acts that transgress the temporal, spatial, material, and subjective boundaries of the law, thereby introducing the notion of “alegality by design”—as the design of a technological artifact can provide affordances for alegality. Third, the article discusses how the law could respond to the alegality of blockchain technology through innovative policies encouraging the use of regulatory sandboxes to test for the “functional equivalence” and “regulatory equivalence” of the practices and processes implemented by blockchain initiatives.

Original languageEnglish
Pages (from-to)358-372
Number of pages15
JournalPolicy and Society
Volume41
Issue number3
Early online date16 Feb 2022
DOIs
Publication statusPublished - Sept 2022

Keywords / Materials (for Non-textual outputs)

  • alegality
  • blockchain governance
  • decentralized autonomous organizations
  • legal theory
  • regulatory sandbox

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