Cryptonexa reported last June 2021 that the Spanish Ministry of Economic Affairs is preparing to reform stock market operations and incorporate blockchain technology to align with the European Union’s regulations. A couple of years ago, no one would have expected them to be this influential in swaying traditional economic institutions in accepting them as a form of currency and investment.
However, despite a lot of progress in the blockchain industry, like with all new technology, there’s still much hesitancy and skepticism, especially regarding the policies and regulations about blockchains. In this article, we will discuss why blockchain policies will need legal translations to not only prevent lawsuits but will help non-English-speaking locals to accept them.
Let’s get started!
Benefits of translating blockchain policies
The appeal of blockchains like Bitcoin is because they are a way to decentralized currency, and it’s more transparent through online ledgers tracking all transactions. Meanwhile, making it accessible with minimal bureaucracy.
However, many still question its security as a currency. Some have even questioned its legality because it has been used several times as a currency for illegal activities. One could argue that the disadvantages mentioned are issues of lawmakers trying to catch up with new technology.
Due to this, translating serves as a vital part of integrating blockchains into a foreign market. I have listed three reasons why blockchains will benefit from having their policies localized, as follows:
1. Legal compliance prevents lawsuits
Having blockchain policies in compliance with local laws regarding cryptocurrencies, transactions, and blockchain technology resolves any doubts about blockchain’s legality and safety as an acknowledged form of currency.
What is currency anyways? Investopedia explained that the reason why Bitcoin and some blockchain currencies have value is that just like conventional currencies, they are scarce, divisible, utilized, transportable, durable, and counterfeitable.
So it would be favorable for a blockchain to legally comply with a foreign market before entering into it to prevent lawsuits and illegal transactions due to the loose application of regulations.
2. Your users have a clearer understanding of their rights
What’s the point of creating a blockchain that’s supposed to provide efficient transactions to its users if no one understands their rights? Not everyone speaks or understands the English language.
Blockchains that want to enter foreign markets and want to be accepted as currencies then their policies need to be in different languages. It would benefit its users by having strict regulations regarding their rights, investing, transactions, transparency of blockchain ledgers, privacy data, etc.
And because you’ve made your policies in compliance with local laws and easily understandable to the everyday person, it alleviates any suspicions or hesitancy from your users.
3. It fosters loyalty and trust with your users
There is an overwhelming amount of doubt and mistrust in the public when it comes to financial institutions like banks and the government. The whole reason why blockchains, like Bitcoin were created to have a more democratic and decentralized currency.
Technology Review reported about cryptocurrency startups trying to save Argentina’s economy. They featured BitPagos which was a blockchain first used by merchants. Lately, it has rebranded itself as Ripio for its Argentina, Mexico, and Brazil local users. It showed how they localized their services and platform to cater to their target locale.
Tips when making your blockchain policies compliant
I have written below some tips if you’re planning to localize your block chain policies, as follows:
Collaborate with legal translation services
If you’re planning to enter a foreign market, I advise that you find legal translation services because they will help you research local regulations and policies regarding blockchain and cryptocurrencies.
We have gathered three companies from the language industry to discuss legal translation and compliance cryptocurrency and blockchain policy.
Tomedes, a provider of legal translation services, gave advice about selecting a legal translation service. They said you should ask the legal translation services if they have linguists skilled in the language of the law with technology-driven services for your blockchain policies in almost any language. You should also ask for credentials of their language experts, like if they are International Organization for Standardization (ISO) accredited and if their legal experts are natives to your target region/country.
Nimdzi, an international marketing firm, stated that because cryptocurrencies and blockchains are relatively new many politicians and lawmakers are struggling to keep up with the new technology. However, the language service industry would help facilitate through compliance, and if blockchain technology is to continue to prosper it has to gain trust from the public.
Lokalise, a company that specializes in legal translation and translation tools, stated four things that blockchain companies have to deal with when it comes to compliance: (1) technical content, (2) User experience, (3) payment methods, and (4) legal compliance. They believe that professional translators are up for the challenge when it comes to providing legal translation services for this specialized technology.
Researching local cryptocurrency laws and regulations
With professional legal translation services, they can assist you in researching your target locale’s cryptocurrency and block laws and regulations. They can also provide insight regarding the implementation of your localized blockchain policies with your software or app.
As mentioned, some providers of legal translation services have native legal translators in their company who can facilitate in drafting localized policies for your blockchain services and technology.
Local legal experts specializing in cryptocurrency policies
Lastly, I advise you to contact your target locale’s law firms who’re experts in cryptocurrency and blockchain regulations. This is to ensure that everything about your policies follows your target locale’s legal system. It’s always good to have a fresh set of eyes from well-established experts examining and verifying the quality of your localized policy.