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Like ICOs, cryptocurrencies and tokens, self-executing contracts are not specifically regulated in Spain and are subject to Spanish contract law just like any other contract. Self-executing contracts do not have a specific arbitration or mediation process. These mechanisms are available on the same terms as any other contract. While self-executing contracts are not specifically regulated, we recommend that the following rules be followed:

• the self-executing contract will be governed by Law 7/1998 of 13 April 1998 on general contracting conditions, which imposes certain conditions and interpretation rules, as well as a public registry of general contracting conditions if one party imposes pre-established clauses for a generality of contracts on the self-executing contract;
• if a self-executing contract is entered into with consumers, Royal Legislative Decree 1/2007 of 16 November 2007 approving the revised text of the General Consumers Law would also apply. This regulation establishes guiding principles applicable to relationships between consumers (understood as legal or natural persons acting in a context that falls outside their entrepreneurial or professional activities) and entrepreneurs;
• also of note is Law 34/2002 of 11 July 2002 on services of the information society and electronic commerce, which would apply if the contract is entered into by electronic means. It establishes a regulatory regime for electronic agreements (e.g., the information to be provided to the contracting parties prior to and after the execution of the agreements, the conditions applicable for electronic agreements to be valid, and other obligations applicable to the electronic providers); and
• if the contract falls into the definition of a financial service, Law 22/2007 of 11 July 2007 on the distance marketing of financial services addressed to consumers, setting out the rules for electronic agreements and electronic marketing communications, would also apply. ¹

Under Spanish law, fully automated investment processes are not regulated. However, certain provisions of Regulation (EU) No. 596/2014 and MiFID II apply to algorithmic trading and high-frequency trading strategies.¹

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Notes

1. https://thelawreviews.co.uk/title/the-financial-technology-law-review/spain