Global Blockchain-Based Trade Finance Solutions: Analysis of Governance Models and Impact on Local Laws in Six Jurisdictions

Abstract

Despite the economic importance of trade finance in commercial trade, the fundamentals of trade finance have not dramatically changed for centuries. Most of the transactions continue to be largely paper-based and counterparties still face many of the same risks, obstacles and challenges they did when the Spanish empire ruled the seas. The use of blockchain can address many of these inefficiencies and reduce the friction encountered by sme s using trade finance arrangements to access global markets. This article sets out the main advantages of using blockchain-based trade finance solutions in order to explore the legal developments in a cross section of six jurisdictions with differing approaches (USA, UK, Australia, Singapore, Hong Kong and Qatar). The paper concludes that legal reforms have an important role in assisting the introduction of blockchain into trade finance. Moreover, such an introduction will greatly benefit the economic prospects of sme s seeking to reach transnational markets.

Economic and legal approaches to the humanization of FinTech in the economy of artificial intelligence through the integration of blockchain into ESG Finance

“…Contrary to the position expressed by such authors as Ibrahim and Truby (2021), Takanashi (2020), Truby et al (2022), it has been proved that public institutions (factors of state regulation) can have a negative impact on blockchain finance: to retard their development even in a highly developed institutional environment. Thus, the increase in: guarantees of the rule of law, the level of economic freedom, the quality of government regulation and political and operational stability, instead of the expected support, hinders the development of blockchain finance.…”

“…RQ 3 : What influence do public institutions (factors of state regulation) have on blockchain finance as one of the key components of modern FinTech? In their publications Ibrahim and Truby (2021), Takanashi (2020), Truby et al (2022) indicate that strong public institutions and the favorable influence of government regulation factors (rule of law, economic freedom, high quality of government regulation, political and business stability, high level of development of the e-government system, as well as high efficiency of government regulation) have a positive (stimulating) impact on blockchain finance.…”

When Criminals Abuse the Blockchain: Establishing Personal Jurisdiction in a Decentralised Environment

“…As an emerging technology, there is limited literature addressing criminal jurisdiction and cryptocurrency (Lukings and Habibi Lashkari 2022). However, there is a large body of literature addressing civil jurisdiction (Yang 2022;Co 2021;Pecharsky and Yahya 2022) and the scope of regulatory authority (Caudevilla 2022), including whether digital assets are securities (Gonzalez 2022;Colesanti 2022). These were reviewed in addition to the literature on internet and cybercrime jurisdiction as they have important implications for cryptocurrencies.…”

Filling the SME credit gap: a systematic review of blockchain-based SME finance literature

“…The reviewed articles encompass a diverse range of geographical contexts, shedding light on the global interest in understanding the implications of blockchain technology for SMEs. The investigation spans various regions, including India (Kaur et al ., 2022; Paliwal et al ., 2020; Sahoo and Thakur, 2023), Ghana (Asante Boakye et al ., 2022, 2023), Saudi Arabia (Alshareef and Tunio, 2022), China (Chen et al ., 2021; Sun et al ., 2021a, b), Qatar (Dahdal et al ., 2020) and Russia (Christian et al ., 2020), and examines sectors as varied as housing (Utkarsh et al ., 2022), trade finance (Dahdal et al ., 2020; Truby et al ., 2022), livestock export (Miller et al ., 2023), e-commerce (Jiang and Chen, 2021; Li et al ., 2020) and automotive retail (Chen et al ., 2020). This diverse representation underscores the ubiquity of the exploration into blockchain's potential impact on SMEs across different nations and industries.…”