The UK government has requested its independent statutory authority for legislation to investigate how England and Wales’ property rules might apply to digital assets because many nations haven’t known how to regulate cryptocurrencies.
Furthermore, the UK Law Commission recommended on Thursday that cryptocurrencies and non-fungible tokens (NFTs) be treated as personal property under the law.
According to the statement, to “take into account the distinctive properties of digital assets,” this type of personal property would be referred to as “data objects.” The independent panel will investigate ways to enhance data items as well.
The UK Law Commission Legal Framework
The panel will also attempt to explain the legal framework governing digital asset possession, management, transfer, and exchange. The panel asserts that as new technologies, such as digital assets, are developed, rules must also change. Additionally, they claim that the law will safeguard consumers and optimize the utilization of digital assets.
The Commercial and Common Law law commissioner, Sarah Green, stated that the regulations needed to be adaptable enough to encompass digital assets. The concepts are intended to establish a strong legal framework that provides customers with more consistency and protection while making it more straightforward for new technologies to develop.
Conversely, classifying digital assets as data elements demonstrates that sanctions for cryptocurrencies may be implemented.
“We tentatively find that there is an arguable argument for law reform to give courts the flexibility to award a remedy denominated in particular crypto-tokens in appropriate instances,” the panel’s statement read. The committee claimed in a statement that the plan might assist the government in achieving its objective of turning the Western superpower into a center for cryptocurrency.
Green continued, “Rather than hurriedly imposing institutions that could hinder their development, it’s crucial that we focus on building the correct legal underpinnings to enable these emerging technologies. By clarifying the legislation, England and Wales might benefit from the potential rewards and establish itself as a hub for digital assets.