U.K. Law Commission is charged with monitoring UK laws and proposing reforms. It has ruled that England and Wales are not required to reform statutory law in order for digital asset spaces to have smart contracts.

A Thursday announcement by the commission. smart contracts built using distributed ledger technology are permissible within England’s and Wales’ current legal framework. The Law Commission recommended only “an incremental development of the common law” as needed for existing frameworks, but also encouraged any parties to smart contracts to explain risks relating to “the performance of the code” and any other necessary terms.