The EU’s attempts to grab business from the City are a danger to markets

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Similarly, in 1989, German legislation had to be enacted to address a concern arising from a German federal court decision of 1970. The new legislation had to make clear that derivatives contracts are not caught by provisions of the German civil code that state that no obligations are created on the basis of gambling, a concern which threatened the validity of all German law derivatives.

The phenomenon is global. In Japan, which applies the civil law based on both the German and French methods, a judicial decision that Bitcoin is not property in the context of the bankruptcy of Mt Gox, the Bitcoin exchange, caused uncertainty which still lingers, despite regulatory legislation passed after that decision in 2016. A different result was reached in the Hangzhou Internet Court in China, despite the law in question being very similar, which shows the unpredictability of the approach.

The common law has been able to address all of these issues through…

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