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Company law, legal considerations and compliance are important for starting and running a business. block chain The corporate network enables companies to interact with their stakeholders in a geographically reliable and traceable manner. It is therefore important that the blockchain business network complies with the required business laws, geographic standards, global standards, government regulations, taxation and other rules.
We have previously drafted a four-dimensional framework – Business, Operations, Law and Technology (BOLT), which are key aspects in building effective business networks. We want to take this opportunity to look legal dimension in more detail.
When building a network, it is important to respect data protection, the legal aspects of use smart contracts, the geographical legal aspects are divided into nodes in different geographical areas. Cross-border regulation and governance play a key role in the successful implementation of the blockchain business network.
Business network design should focus on early compliance with regulatory and regulatory requirements.
1. Legislative, regulatory challenges and compliance are crucial for the network
When building a blockchain platform-centric business network, it is important to ensure that all relevant business rules and regulations are followed. Evaluate current contract practices and choose from what can be automated with smart contracts without violating agreed terms.
Ensure that smart contracts are reviewed and approved by legislators and other administrative and regulatory bodies. The special law enforcement and related taxation of the destination country must be addressed and handled in transactions.
2. Data protection to improve the confidentiality of information and transactions
Define access control rules, certificate mapping to create reliable and secure access based on the proportion of people and participants in the network. Confidentiality is always required and a certificate of zero information (ZKP) between the two parties (the verifier and the verifier) is required without revealing the actual secret.
Identify peer-to-peer versions (organizations) that deal with channel shared accounting. Also, identify confidential information that does not need to be shared with all channel parties, but shared with one or a few channel organizations privately through private data collection. Ensure audibility and identify a way to evaluate privacy-preserving transactions.
3. Residence of data and compliance with data protection
Evaluate the data model and differentiate data based on privacy and residence rules, also identify privacy mechanisms such as channel, private data collection, off-chain, encryption and others, with access policies for proper access separation and access control. Identify personal information and store it in a non-chain or private state in accordance with the General Data Protection and Regulation (GDPR).
4. The rules on cross-border trade must remain compliant
There is a legal framework and institutions responsible for enforcing cross-border rules and regulations in international trade. So this needs to be focused from the perspective of the blockchain business network to keep it compliant. Identify cross-border bodies and their validation rules. Create a common set of (smart) agreements that can be reviewed and approved by all relevant regulators to automate it to facilitate validation and compliance. This will help create a control panel for inspection.
Identify and comply with all relevant trade compliance regulatory actions that take place in multiple jurisdictions and trade processing countries. If you want to comply with government regulations, look at it among the documents required, customs legislation, export / import controls, and other domestic and cross-border trade and distribution of goods and services. Create international tax planning and enforcement to stay compliant in cross-border businesses.
Therefore, designing a legal perspective right from the start of a solution is the key to success in building trust and compliance block chain corporate network.
Stay tuned for incoming messages that will continue our in-depth examination of other dimensions that will allow us to build an effective business network. If you would like more information and discussion on this topic, please feel free to contact us.
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