Standardizing ASEAN Smart Contract Law: Protecting MSMEs and Advancing Transactional Justice in the Digital Era

Abstract

The rapid digital transformation of cross-border commerce across the ASEAN region has catalysed widespread adoption of smart contracts as efficient, self-executing transactional instruments. Yet the absence of a harmonised regional legal framework generates profound juridical uncertainty a vulnerability that falls disproportionately upon micro, small, and medium enterprises (MSMEs), the economic backbone of the region. This study investigates the legal implications of the missing universal standard governing the validity and execution of smart contracts, with particular focus on the juridical risks borne by MSMEs engaged in digital cross-border trade, and proceeds to formulate an inclusive smart contract clause standardisation model grounded in the principle of contractual fairness. Employing a normative-juridical methodology that integrates comparative and conceptual legal approaches, the research systematically examines smart contract regulations across ASEAN member states alongside pertinent international instruments. The analysis reveals that inter-state regulatory disparities within ASEAN create exploitable legal lacunae that structurally disadvantage MSMEs, eroding their bargaining position within digital contract ecosystems. The study's principal contribution is the conceptualisation of ASEAN Standardized Smart Clauses a regional clause-standardisation framework anchored in a human-in-the-loop mechanism and integrated with a regional Online Dispute Resolution (ODR) system. This novel framework offers an adaptive, inclusive, and equity-driven response to the pressing need for robust legal protection for small enterprises navigating ASEAN's evolving digital marketplace.