Establishment of Smart Financing Contracts on Blockchain Platforms with an Emphasis on Consumer Protection: A Comparative Study of the Iranian Legal System and Canadian Regulatory Framework

Abstract

Housing financing contracts, as one of the most significant instruments for securing legal and economic rights, play a fundamental role in promoting economic stability and social justice. However, due to the inherent imbalance of bargaining power between financial institutions and borrowers, these contracts are consistently exposed to legal and enforcement-related challenges. The regulation of residential financing agreements within the Iranian legal system is primarily grounded in general principles of contract law, bank-centered regulations, and administrative directives. This situation has contributed to inadequate protection of financial consumers, reduced contractual transparency, and an increased likelihood of legal disputes. In contrast, the Canadian legal system has adopted a proactive approach to financial regulation. Through the implementation of federal and provincial regulatory frameworks, together with preventive and systematic supervisory mechanisms aimed at consumer protection, Canada seeks to maintain contractual balance within the lending market. Using a descriptive-analytical approach and a comparative legal methodology, this article examines the extent of convergence and divergence between the Iranian legal system and Canadian regulatory frameworks regarding the smart regulation of financing contracts, with particular emphasis on consumer protection. The study seeks to demonstrate that significant differences exist between the two legal systems in areas such as contractual transparency, consumer support mechanisms, and the role of regulatory institutions.