Smart Contract Regulation for Decentralized Justice and Cross-Border Digital Transactions

Shofiyul Millah; Steven Harazaki Lase; Natalie Septiani; Suca Rusdian

doi:10.34306/vm7xby60

Authors

Shofiyul Millah Universitas Raharja, Indonesia Author https://orcid.org/0000-0002-6696-9450
Steven Harazaki Lase Universitas Raharja, Indonesia Author https://orcid.org/0009-0002-6647-7541
Natalie Septiani Ijiis Incorporation, Singapore Author https://orcid.org/0009-0008-9303-5478
Suca Rusdian Yasa Anggana College of Economics, Indonesia Author https://orcid.org/0009-0008-4805-1524

DOI:

https://doi.org/10.34306/vm7xby60

Keywords:

Smart Contracts, Digital Rights, Decentralized Justice, Regulatory Interoperability, Cross-Border Digital Transactions

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.

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Author Biographies

Shofiyul Millah, Universitas Raharja, Indonesia

Faculty of Economics and Business
Steven Harazaki Lase, Universitas Raharja, Indonesia

Faculty of Economics and Business
Natalie Septiani, Ijiis Incorporation, Singapore

Department of Digital Law and Technology Governance
Suca Rusdian, Yasa Anggana College of Economics, Indonesia

Faculty of Management

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