The impact of property laws on the growth of UK crypto
The UK Law Commission is currently consulting on a bill that aims to fill a gap in the country’s laws. The bill will provide clarity on how digital assets can be recognized as property under the law. The commission believes that the UK’s legal system is flexible enough to accommodate crypto, giving the country a competitive advantage.
The UK Prime Minister Rishi Sunak’s government is on the brink of receiving a crypto boost.
The UK Law Commission, an independent body that reviews the law, has recently launched a consultation on a bill.
This bill aims to update the law of England and Wales to account for digital assets as property.
Why is this important?
Imagine owning Bitcoin and sending some to a friend. While this may seem like a simple transaction, the ownership of that Bitcoin may be uncertain under UK law.
While there are clear guidelines on ownership of tangible assets like cars and money in bank accounts, the same does not apply to cryptocurrencies.
The Law Commission has examined whether common law is flexible enough to consider digital assets as property and concluded that it is.
This means that new laws are not necessary to accommodate crypto, giving the UK an advantage over countries that have had to create new legislation for digital assets.
Back when he was finance minister, Sunak pledged to turn the UK into a crypto hub.
Still, the commission identified a gap in the common law concerning digital assets not neatly fitting into the categories of tangible or intangible property.
Therefore, the Law Commission has proposed a draft law to address this gap.
The deadline for public comments on the bill is March 22, after which it will proceed to Parliament for enactment into law.
This will provide legal clarity for the UK and support Sunak’s crypto ambitions.
For more information, contact me at joanna@dlnews.com or via Telegram @joannallama.
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