Regulated financial institutions who see the benefits of DLT continue to drive towards commercialization at pace. R3’s Corda is tailored for use by financial institutions and, as such, has many design aspects that are different from public blockchains, one of which is the limited data sharing that allows flexibility in meeting multiple jurisdictional data privacy requirements.

As technology evolves, the law evolves. Every new piece of technology added to an institution’s IT program needs to be fully understood, not just in the context of existing regulations, but for compatibility with future regulations.

Privacy and data protection laws, in their various iterations around the world, represent a real and current compliance challenge for public and private distributed ledger technology implementations. In general, such compliance cannot be “backfilled” into an ecosystem: “privacy by design,” which is a mantra for privacy regulators around the world, should truly be a key consideration of any new implementation.
© 2019 Baker McKenzie