UK Law Commission Aims to Define Cryptocurrencies as “Property” in Proposed Legislation

Fresh UK Legislation Proposes Cryptocurrency Classification as Property

Freshly proposed UK legislation aims to officially classify cryptocurrencies as a new form of property, establishing greater legal certainty around digital assets at large. The proposal, launched by the Law Commission of England, is designed to clarify the position that courts have been increasingly moving towards. It expects responses within one month.

Seeking Clarity on Cryptocurrencies in the UK

The Law Commission of England launched a consultation exercise on its proposed legislation, emphasizing the need for greater clarity around digital assets. The proposed legislation aims to recognize and protect the unique features of certain digital assets, including crypto-tokens and cryptoassets, within the legal framework.

Impact of the Legislation

If passed, the bill would help enforce property rights around crypto in areas that were previously legally uncertain. It would provide stronger remedies for individuals in disputes involving digital assets, preventing the dissipation of assets before dispute resolution.

Expanding Property Rights in the UK

The proposed legislation represents an expansion of property rights in the UK, recognizing a distinct category of personal property for digital assets. This move comes after recent court cases involving crypto tokens, prompting the government to consider accommodating a “third category” of property rights.

Regulatory Developments

In addition to the proposed legislation, the Bank of England recently closed its consultation on a regulatory regime for payment stablecoins. Some crypto firms have praised the UK for being more proactive in crypto legislation compared to their US counterparts.