The intersection of digital economy, blockchain technology, and legal frameworks has become one of the most dynamic and complex frontiers in modern governance and innovation. On October 20, 2019, a pivotal symposium titled "Digital Economy, Blockchain, and the Law" was successfully held at the Shanghai office of V&T Law Firm, co-hosted by the Institute of Digital Assets and other leading institutions. The event brought together over 15 legal experts, economists, technologists, and regulators to explore pressing issues at the nexus of law and emerging digital technologies.
This high-level discussion provided a rare multidisciplinary platform for deep analysis on how legal systems can adapt to rapid technological change—particularly in the realms of cryptocurrency, smart contracts, digital assets, and decentralized finance.
Opening Remarks: Setting the Stage for Legal Evolution
The symposium commenced with welcoming remarks from Xu Meng, founding partner and committee member of V&T Law Firm. He emphasized the growing importance of legal foresight in navigating the uncharted waters of blockchain innovation.
Representing the Institute of Digital Assets, Bai Liang, founder of 01 Finance, highlighted the organization’s mission to bridge theoretical research with real-world applications. He stressed the need to align blockchain advancements with practical industry use cases—especially in foundational areas such as monetary systems, data governance, and regulatory infrastructure.
Keynote speaker Professor Zhu Jiaming, renowned economist and院长 of the Institute of Digital Assets, delivered a compelling opening address. He identified a critical gap between the pace of technological innovation and the responsiveness of legal systems. According to Zhu, current legal frameworks suffer from:
- Regulatory vacuums for emerging digital phenomena
- Slow adaptation to fast-moving tech developments
- Overregulation or knee-jerk reactions without sufficient understanding
- Lack of rational, coordinated responses across jurisdictions
Zhu attributed this imbalance to three core challenges:
- Knowledge asymmetry among technologists, lawmakers, and economic actors
- Fundamental mismatch between rigid legal structures and agile digital technologies
- Absence of continuous dialogue between government bodies, private enterprises, developers, and citizens
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In-Depth Discussions: Four Key Focus Areas
The symposium was structured around four comprehensive专题 sessions, each addressing a crucial dimension of blockchain law and policy.
🔹 Session 1: Legal Definitions and Foundational Principles
Understanding the nature of digital assets begins with precise legal categorization.
- Many Qi explored “Currency Issuance Rights: The Interplay Between Public and Private Power,” examining how decentralized networks challenge state monopolies on money creation.
- Ke Da analyzed “Legal Responses to Cryptocurrencies and Central Bank Digital Currencies (CBDCs),” advocating for updated monetary laws that reflect new forms of value transfer.
- Fan Xiaojun presented a detailed study on “Legal Implications of Smart Contracts,” questioning whether code can truly function as binding law.
- Jin Zhenhua proposed a comprehensive “Legal Classification Framework for Tokens,” differentiating utility, security, and payment tokens under existing regulatory paradigms.
These discussions underscored the urgent need for clear definitions—a prerequisite for effective regulation.
🔹 Session 2: Regulatory Frameworks and Enforcement Challenges
As digital assets cross borders effortlessly, enforcement becomes increasingly complex.
- Zhu Mingzhao outlined “The U.S. Regulatory Framework for Digital Currencies,” highlighting the roles of the SEC, CFTC, and FinCEN.
- Cai Zhenghua discussed “Blockchain’s Impact on Criminal Law,” particularly concerning illicit transactions and jurisdictional conflicts.
- He Yuan examined “Financial Data Regulation Trends,” using web crawlers as a case study to illustrate data privacy vs. innovation tensions.
- Wang Bochong shared insights into “Singapore’s Progressive Regulatory Approach,” praising its sandbox model and clarity for fintech firms.
- Luo Tao addressed “Litigation Involving Digital Assets,” including custody disputes, fraud claims, and evidentiary challenges in court.
A recurring theme was the necessity for adaptive, principle-based regulation rather than rigid rulebooks.
🔹 Session 3: The Libra Challenge – A Global Perspective
The announcement of Facebook’s Libra (now Diem) project had sparked global regulatory alarm. This session dissected its implications.
- Yang Jinyan discussed “Token Classification and Tiered Regulation,” proposing risk-based oversight models.
- Long Baitao analyzed “Regulatory Challenges Posed by Global Stablecoins Like Libra,” warning of monetary sovereignty risks and financial stability concerns.
- Zhang Feng explored “Legal Issues in Blockchain Applications,” using Libra as a lens to examine cross-border compliance, KYC/AML requirements, and corporate liability.
The consensus? Projects with global reach demand coordinated international responses.
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🔹 Session 4: Blockchain Empowering Legal Systems
Ironically, while law struggles to regulate blockchain, blockchain can also modernize law.
- Wan Zhiguo explained “How Cryptography Supports Blockchain and Its Regulation,” showcasing tools like zero-knowledge proofs and secure multi-party computation.
- Fan Shiyuan introduced “Messenger Algorithms Enabling Innovators to Overcome Barriers,” focusing on decentralized communication protocols.
- Ji Fengjian provided an overview of “Current Judicial Practices Related to Blockchain,” including evidence authentication via blockchain notarization in Chinese courts.
This session revealed a powerful irony: the same technology disrupting traditional finance could also revolutionize legal transparency and efficiency.
Open Forum: Bridging the Gap Between Law and Technology
During the open discussion, participants tackled fundamental questions:
- What new social and economic relationships emerge from digital currencies?
- How must legal thinking evolve to keep pace?
- Where are the most urgent areas for legal adaptation?
- What lessons can be drawn from global successes—and failures—in digital governance?
Attendees agreed that interdisciplinary collaboration is non-negotiable. Legal professionals must engage with computer science; policymakers must consult engineers; academics must communicate with practitioners.
Professor Zhu Jiaming concluded by calling the symposium a “highly interdisciplinary exploration” of one of today’s most complex systems. He praised the diversity of perspectives and urged continued dialogue across silos.
Frequently Asked Questions (FAQ)
Q: Why is there a growing mismatch between law and blockchain technology?
A: Laws are typically slow, consensus-driven, and jurisdiction-bound, while blockchain operates in real-time, across borders, and evolves rapidly through open-source development. This creates inherent friction.
Q: Can smart contracts replace traditional legal contracts?
A: Not fully. While smart contracts automate execution, they lack mechanisms for interpretation, dispute resolution, or handling unforeseen circumstances—areas where human judgment remains essential.
Q: What role should governments play in regulating digital assets?
A: Governments should focus on consumer protection, financial stability, anti-money laundering (AML), and ensuring fair competition—without stifling innovation through overregulation.
Q: How can lawyers stay updated on blockchain developments?
A: Through specialized training, collaboration with tech experts, participation in industry forums like this symposium, and engagement with regulatory sandboxes.
Q: Is China developing its own legal framework for blockchain?
A: Yes. China has introduced regulations on blockchain registration, data integrity, and digital evidence in litigation, while promoting blockchain for supply chain, finance, and public services.
Q: What are the biggest legal risks in launching a token project?
A: Misclassification (e.g., issuing a security without registration), inadequate disclosures, non-compliance with KYC/AML rules, and cross-border regulatory exposure.
Final Thoughts: Toward Adaptive Legal Ecosystems
The 2019 symposium served as a wake-up call: the legal system cannot afford to lag behind technological progress. As blockchain reshapes finance, identity, ownership, and governance, laws must become more agile, informed, and inclusive.
Core keywords emerging from this discourse include: digital economy, blockchain law, cryptocurrency regulation, smart contracts, digital assets, legal innovation, decentralized finance (DeFi), and global stablecoins—all critical components of tomorrow’s digital legal landscape.
👉 Stay ahead in the evolving world of blockchain law and digital asset compliance.
By fostering ongoing dialogue between technologists and legal scholars, events like this lay the groundwork for balanced, forward-looking policies that protect society while enabling innovation. The future of law isn’t just about rules—it’s about resilience in the face of change.