Top cryptocurrency news: Law Commission for England and Wales proposes reforms for digital assets
28-Jul-2022
By: Shikha Jha
The Law Commission of England and Wales has proposed a variety of legislative amendments to offer cryptocurrency and digital asset users with greater recognition and legal safeguards.
The institution is evaluating existing legislation on digital assets at the request of the British government in order to accommodate the sector as it expands in scope and use. On Thursday, the Law Commission issued a request for public comment from legal experts, technologists, and users.
The proposal highlights the dynamic nature and multidimensional use of cryptocurrencies, nonfungible tokens (NFTs), and other digital assets. Cryptocurrencies are utilized as a form of payment, a store of value, and a digital representation of ownership or rights to stocks and debt assets.
The Law Commission intends to provide broader recognition and legal safeguards for digital assets in order to enable a broader spectrum of people, enterprises, and institutions to participate in the developing industry. The consultation paper investigates how personal property rules relate to digital assets and why they should be classified separately under this umbrella.
Four significant proposals are made:
Beginning with the explicit definition of a different legal category of personal property to accommodate the particular characteristics of digital assets under the banner of "data objects."
The second proposal will be to establish several possibilities for the development and deployment of "data objects" in accordance with existing law. The final two proposals are to clarify the legislation regarding digital asset ownership and control, as well as transfers and transactions.
Professor Sarah Green, Commercial and Common Law commissioner, stated that the institution is focusing on the specific qualities of the technology in order to create a strong legal framework for the ecosystem to evolve organically.
The proposed legal changes are in line with government aims to make England and Wales a centre for cryptocurrencies and digital asset systems. The deadline for public replies to the Law Commission's consultation document is November 4, 2022.
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