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UK Law Commission Moves to Classify Crypto as ‘Property’

Legal

www.coinspeaker.com 28 July 2022 11:41, UTC
  
Reading time: ~2 m

The United Kingdom is fast positioning itself as a crypto-friendly nation.

Regulators around the world are in a constant struggle to come up with suitable crypto regulations. And to this end, the UK Law Commission is proposing to apply property laws to cryptocurrencies in England and Wales. That means it will seek to adjust the existing property laws to accommodate crypto and non-fungible tokens (NFTs).

UK Law Commission Seeks to Protect Investors’ Interests

According to a consultation paper posted by the 57-year-old commission on Thursday, it hopes to bring crypto and NFTs under the country’s personal property laws. By doing this, there will be a legal definition for digital assets, and they will be recognized as ‘personal property’.

Although, before now, existing law of England and Wales had made room to accommodate new innovations and technologies. However, the commission believes that, in order to maximize the potential of digital assets, several aspects of it must be reformed.

The commission also believes that crypto investors will be more protected against losses. This is because, by the proposed law, investors will also be able to claim losses in hacks or scams through legal action. Without a doubt, digital assets, including crypto and NFTs continue to play a vital role in the world of today. And according to Professor Sarah Green of the commission:

“It is vital that our laws are adaptable enough to be able to accommodate them.”

Crypto-Friendliness Goals

Notably, the United Kingdom is fast positioning itself as a crypto-friendly nation. In fact, as mentioned in parts of the commission’s statement, this property law proposal is part of the government’s broader efforts at creating a global crypto hub in the UK. Some of the country’s efforts also include the recently-submitted stablecoin payments proposal.

Just last week, financial regulators in the UK proposed rules to the Parliament to legally allow stablecoins payments. Additionally, the government is also currently consulting on the prospects of crypto as an investment. And it should come up with something tangible by the end of the year.


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