The Law Commission of England has initiated a consultation on proposed legislation to officially recognize cryptoassets as a distinct category of property. This move follows the release of the Commission’s final report on digital assets in June 2023, which recommended legal adjustments to address uncertainties surrounding cryptocurrencies and other digital assets.
Recognizing cryptoassets as property is seen by the Law Commission as essential for enabling individuals and businesses to fully leverage these assets and for courts to adequately safeguard related property rights.
In a statement, the Law Commission emphasized the importance of personal property rights, particularly in scenarios involving insolvency or unlawful interference with assets. However, due to the significant differences between digital assets and physical or rights-based assets, traditional categories of personal property do not fully encompass cryptoassets.
Alongside the consultation on draft cryptoasset legislation, the Law Commission has issued a call for evidence for a separate project focusing on digital assets and electronic trade documents in private international law. Stakeholders are invited to provide feedback on the proposed legislation by March 22nd, while the deadline for the private international law project is May 16th.
These legislative initiatives, preceded by extensive review by the Law Commission, aim to offer clearer legal frameworks and protections for cryptoasset users. Successful implementation could also support the UK government’s ambition to position London as a leading global center for cryptocurrency innovation and investment.
