UK Commission Publishes Recommendations for Reform and Development of the Law on Digital Assets

The Law Commission of England and Wales has published its “recommendations for reform and development of the law on digital assets.” The recommendations, which seek to secure the U.K.’s position as a global crypto hub, are intended “to provide a comprehensive legal foundation for digital assets which will allow these new technologies to flourish.”

Accommodating Digital Assets as They Evolve

The United Kingdom independent body, the Law Commission of England and Wales, has published its “recommendations for reform and development of the law on digital assets.” In a statement, the statutory body added that the recommendations, which seek to help secure the U.K.’s position as a global crypto hub, are intended “to provide a comprehensive legal foundation for digital assets which will allow these new technologies to flourish.”

The recommendations also supposedly seek to enable “a diverse range of market participants to interact with and benefit from” the tech and digital assets.

The Law Commission’s latest statement on digital assets came just under a year after it released a consultation paper proposing to reform the law relating to digital assets. As reported by Bitcoin.com News in late July 2022, the commission’s publication of the consultation paper followed a request by the government asking it “to review the law on digital assets, to ensure that it can accommodate them as they continue to evolve and expand.”

Ensuring the Law Remains ‘a Flexible Tool That Enables Further Technological Innovation’

Commenting on the Commission’s digital asset regulation recommendations, Sarah Green, Law Commissioner for commercial and common law, said:

Our recommendations for reform and development of the law, therefore, seek to solidify the legal foundation for digital assets. We also aim to ensure that the private law in England and Wales remains a dynamic, globally competitive and flexible tool that enables further technological innovation.

Mike Freer, the U.K. justice minister, said the findings of the consultation process show the strength of English and Welsh law “in responding to the fast-paced changes caused by emerging technologies in the law sector.”

Among some of the recommendations is the commission’s call for the enactment of “legislation to confirm the existence of a distinct third category of personal property under the law.” The commission also recommended the creation of a panel of experts “to provide non-binding advice to courts on complex legal issues relating to digital assets.” The creation of a tailor-made framework for facilitating the “operation and enforcement of collateral arrangements relating to crypto-tokens and crypto-assets” is also described.

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