Crypto blindspot risks ‘crumbling’ British legal system place on international stage
Britain’s legal system could lose both business and its international standing because of failures to keep up with laws for new markets like crypto-currency and artificial intelligence, according to a new report.
English law underpins financial contracts and transactions worth trillions around the world, according to the report by think-tank Social Market Foundation.
But the think-tank warned that a lack of laws specific to new technology innovations, including in green investing, could put the “crumbling” English justice system at a disadvantage as investors may consider other, better prepared legal systems.
Politicians, officials and business were accused in the report of having been “complacent” about the issue.
“If companies can’t settle their cases quickly in our crumbling courts,” explained Richard Hyde, a senior researcher at the think-tank, “they will go elsewhere.”
“If business can’t use English law to draw up contracts for cryptocurrencies, AI or green investment, they’ll use another system.”
Lengthy court case delays, costs and problems recruiting judges, were also pinpointed as areas of concern, affecting the legal system’s ability to forward plan.
The report suggested that the delays could also push some potential clients towards resolving issues privately instead of through the courts.
Although the Treasury last week announced it would allocate over £200m to help handle the backlogs in civil courts, the think-tank said more would be needed in the longer term.