Year: 2026
Type: article
Abstract: Blockchain-based smart contracts have introduced new mechanisms for executing cross-border digital transactions through automated and decentralized contractual arrangements. However, their code-based execution creates legal challenges concerning jurisdiction, enforceability, accountability, dispute resolution, and the protection of fundamental legal rights. This study aims to develop a human-centric regulatory framework for smart contracts that strengthens legal certainty, accountability, and access to justice in decentralized and cross-border digital transactions. This study employs normative legal research with a comparative regulatory approach. Primary legal materials, including national legislation and international regulatory instruments governing electronic transactions, blockchain, digital contracts, and dispute resolution, are analyzed through statutory, conceptual, and comparative approaches. The analysis identifies regulatory gaps and formulates principles for interoperable smart contract governance. The study demonstrates that existing legal frameworks insufficiently address automated contractual execution, cross-border jurisdiction, liability for code-based outcomes, and human intervention in decentralized dispute resolution. The proposed framework integrates seven regulatory principles: legal validity and enforceability, transparency and explainability, accountability and liability, human oversight, cross-border jurisdiction, data protection and digital rights, and regulatory interoperability. The framework provides a human centric regulatory architecture for aligning smart contract automation with fun amental legal principles and cross-border regulatory requirements. It contributes to decentralized justice by preserving technological efficiency while ensuring procedural fairness, legal accountability, and protection of digital rights.
Institutions: Universitas Raharja, Sekolah Tinggi Ilmu Ekonomi Yasa Anggana
Language: English
Subfield: Law
Field: Social Sciences
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W7224849255