UK Law Commission Report Proposes Sweeping Legal Reforms of Digital Assets

Updated: 28 June 2023

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The Law Commission of England and Wales has published a report advocating extensive legal reforms to accommodate digital assets within the country’s legal frameworks.

Clarity and Certainty

The report, titled “Digital Assets” aims to promote clarity, certainty, and establish the United Kingdom as a global leader in the crypto industry.

NEW: Today we have published our recommendations for reform and development of the law relating to digital assets, like #NFTs and #cryptotokens.

Our reforms aim to provide greater legal clarity and encourage technological innovation.

📕 Read more here: https://t.co/GEbJkTQWUm pic.twitter.com/VNPsmwkdXR

— Law Commission (@Law_Commission) June 28, 2023

Following a comprehensive consultation period, which concluded on November 4, 2022, the Law Commission’s recommendations address the unique characteristics and rapid evolution of digital assets. The key proposals are as follows:

Creation of a New Category of Personal Property: The report suggests introducing legislation to create a distinct category of personal property for digital assets. This approach, based on common law principles, allows for flexible case-by-case evaluations.
It emphasizes that an asset should not lose its legal status as personal property merely because it is not a physical possession or a contractual right.
To ensure a cohesive understanding and application of intricate legal concepts surrounding digital assets, the report puts forth the idea of assembling an esteemed panel.
This panel would consist of a diverse range of experts, including technical specialists, legal professionals, judges, scholars, and industry insiders.
Their primary objective would be to provide non-binding guidance, empowering the judiciary and courts to navigate the complexities of digital asset laws with greater clarity and confidence.

By drawing on the collective expertise of this panel, the legal system can adapt and respond effectively to the evolving landscape of digital assets.

Also, check out our list of the best cryptos to buy.

Transforming Markets

Establishing a clear legal framework for collateral arrangements has the potential to reshape regulatory landscapes.

Technological advancements will also play a crucial role in ensuring the effectiveness and legal certainty of offchain transfers.

The government will carefully consider the Law Commission’s findings and recommendations as it seeks to create a favorable environment for digital asset innovation.

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