A judge in the United Kingdom greenlighted legal documents to get served over a blockchain via a non-fungible token. Service of process, the procedure by which a party to a lawsuit gives an appropriate notice of legal action to another party, can take effect through a blockchain in Britain now.
A judge in the United Kingdom approved legal documents to get served through a blockchain via a non-fungible token (NFT).
Service of process, the procedure by which a party to a lawsuit brings an appropriate notice of initial legal activities to another party, can take effect over a blockchain in Britain now. The observation of service itself would appear as an NFT.
Although these items usually take the form of artwork, NFTs can also play the role of a digital certificate of authenticity.
Serving the Community with Blockchain Tech
The decision arrived from a case conducted by the founder of an online gambling entity against digital asset exchanges and other networks, including Binance. According to a legal claim issued by Fabrizio D’Aloia, his digital assets got cloned while in the custody of the brokerages to commit fraud.
The court decided that the entities leading the exchanges were thus responsible for corroborating that the extracted crypto did not move or got taken out of the networks.
The feature would initiate its process via airdropping documents as NFT. This process would take effect in a pair of wallets initially employed by D’Aloia, which got stolen by fraudsters.
According to the law entity, Giambrone & Partners LLPthis action marks a new era for victims of crypto fraud to file complaints against unknown crooks in The United Kingdom. Last month, a court in the United States of America made a similar move and approved this kind of service via NFT.
Blockchain reporting Via NFTs
The approval of this service wouldn’t be the first time authorities carry out their activities over a blockchain. Last year, the United Kingdom Financial Conduct Authority and the Bank of England deployed a blockchain network to deal with regulatory reporting.
According to FCA Chief Executive Nikhil Rathi, by connecting to entities through blockchain and API technology and carrying out machine-readable and executable regulations, checks for compliance could get achieved in near real-time.
The team employed was made up of data scientists and analysts, with a £120 million budget for a more proactive approach to data collecting skills. Rathi also highlighted that there would be a stronger focus on data-heavy businesses.
Frauds in the Crypto World
As we all know, the value of digital assets depends entirely on supply and demand. That value could generate volatility that produces big profits or losses for investors. Crypto investments do not count on enough regulatory protection. This lack of protection contrasts with traditional financial items like stocks, bonds, and mutual funds.
Fraud related to digital assets has increased in recent years. The Federal Trade Commission in The United States of America received at least 6,800 complaints of digital asset investment scams from October 2020 to March 2021. This increase in crypto fraud forced The United Kingdom to improve the methods to deal with these problems under a legal framework.
By: Jenson Nuñez
