UK Law Commission proposes classifying crypto as a new type of property

In its final recommendation, the England and Wales Legal Commission said digital assets such as cryptocurrencies could fall under a new category of personal property. report to the government.

legal committee, include Lawyers, judges and professors made four specific recommendations in a report released on June 28.

These involved legislation for separate categories of personal property, creation of industry-specific commissions, introduction of a bespoke legal framework for cryptocurrency collateral arrangements, and legislative changes to clarify these arrangements. rice field.

Recommendation

The commission said that current personal property laws are “flexible enough” to include cryptocurrencies. However, cryptocurrencies have unique features that distinguish them from physical assets, securities, and other forms of property.

The report therefore noted the need to legislate distinct categories “in order to better recognize and protect their unique functions.” This recommendation 2022.

The Legal Committee saw value in creating a panel of experts to advise courts on complex legal issues involving cryptocurrencies. According to the report, the commission should be made up of technical experts, legal practitioners, academics and judges.

that Said Current laws on using cryptocurrencies as collateral are “not good enough.” To address these restrictions, the UK will need to create a legal structure that is purpose-built to “make it easier to enter into, operate and enforce collateral arrangements relating to crypto-tokens and crypto-assets.”

The commission also recommended legislative changes to define whether and how certain cryptocurrencies comply with the Financial Collateral Arrangements Rule (FCAR). According to the report, many digital assets may fall outside the scope of FCAR. This action looks like this:

“We aim to create a clear and consistent framework for digital assets that provides users and market participants with greater clarity and security.”

The report quotes Justice Minister Mike Freer as saying:

“We need to ensure our legislation is prepared for the complexities of these technologies well into the future, and we will carefully consider these findings to further strengthen the future of our world-renowned legal system.” I will continue.”

The report says the recommendation will support the government’s cryptocurrency hub ambitions.

The Post UK Law Commission has proposed classifying cryptocurrencies as a new type of asset that first appeared on CryptoSlate.